Homeowners Move More Often, Study Says

My mom still lives the house she bought in 1968. My wife's grandmother still refers to the people who live next door as "the new people" even though they have lived there more than 30 years. Meanwhile, every neighbor (mostly younger families) within five houses in either direction or across the street (except two) from my home in Redondo Beach, Calif., has "turned over" within 3 years.

A new study supports those personal reflections of homeownership showing the vast differences among different generations in how long they stay in homes.

A recent study reaffirms that homeowners are driven to "move up" to bigger and better homes more frequently. Indeed, the average homebuyer moves every 7 years and will own more homes than their parents. Depending on how you look at it, that transience could hamper or help the custom installation business.

The study commissioned by Coldwell Banker Real Estate Corporation found that Americans earning at least $75,000 are buying more houses than their parents at a comparable age, with each generation outpacing the home purchase trends of the previous generation.

According to the "Coldwell Banker 2006 Homeownership in America Study," 66 percent of survey respondents in the Silent Generation (aged 61 and up) have owned between two and five homes. Already, 66 percent of Baby Boomers (aged 42 to 60), have owned a similar two to five homes.

The younger generations surveyed are mimicking these home buying habits. About half (48 percent) of Generation X'ers (aged 32-41), and more than one third (36 percent) of Echo Boomers (aged 31 and younger), have owned between two and five homes.

Fifty-eight (58) percent of respondents have owned more homes than their parents did when their parents were at a comparable age.

What does this mean for custom? It might mean that ephemeral homebuyers will be less likely to want to include electronics in their mortgages.

On the flip side, if lifestyle needs are the driving reason for people to relocate, then buyers want to have a more comfortable, efficient and gadget-filled home. Plus, the study shows that the "do-it-yourself" trend is slowing.

The "Coldwell Banker 2006 Homeownership in America Survey" was conducted online by Harris Interactive(R) between July 19-31, 2006, surveying more than 2,500 U.S. homeowners aged 25 and over who own a home or a condominium and have a minimum household income of $75,000.

The study was conducted in conjunction with the 100th anniversary of the Coldwell Banker brand in August of 2006 to gain a deeper understanding into the behavior patterns of upper income homeowners.

The study says homebuyers do not appear to be collecting houses as a means to expand their financial portfolios by constantly moving to bigger and more expensive houses.

Instead, survey respondents indicate that they move according to lifestyle needs. In fact, only 5 percent of respondents view their current home strictly as part of their financial portfolio, compared to 67 percent of respondents who consider their home a 'home' first.

When asked if they could sell their current home and get more 'home for their money' without affecting their current lifestyle, 53 percent said they would not move or were not sure, according to Jim Gillespie, president and chief executive officer, Coldwell Banker Real Estate Corporation

The National Association of REALTORS has found that people move once every seven years on average.

When asked in the "Coldwell Banker 2006 Homeownership in America Survey" for reasons why they move, 48 percent of respondents indicated they moved because of their career, 45 percent cited a better community lifestyle and 27 percent cited a new relationship / marriage.

Of note, women are more apt to move for a relationship than men, at 53 percent as opposed to 37 percent, respectively.

Additional reasons for moving include the need to be closer to family (16 percent), a more affordable location (15 percent), birth or adoption / growing family (15 percent), more affordable housing (13 percent), warmer climate (13 percent), displeasure with the current home (12 percent) and divorce (11 percent).

Eighty-three (83) percent of married respondents, or those living with a significant other, waited until solidifying their formal relationships to purchase their first home.

The recent hike in mortgage rates is not playing a significant role in the respondents' moving process, with 67 percent indicating that the growing rates are not factors in their decision not to move.



The survey also found that a full 81 percent of respondents do not live in the same town in which they were raised, and 52 percent live more than 200 miles away from that town. However, more than half of the respondents (56 percent) still live in the same state in which they were raised.

When asked to define the areas in which they grew up in comparison to the areas to which they moved, two-thirds of respondents moved to a location either equal to or with a higher urban density (57 percent), moving from city to city, suburb to suburb or suburb to city.

In terms of the homes most recently purchased, the results suggest that the "do-it-yourself" trend of the past several years is beginning to cool down, at least among higher-income homeowners.

A full 68 percent of respondents indicated that the last home they purchased was a brand new house requiring no additional work, or an existing home needing very little renovation.

A majority of the respondents indicated that they paid for the down payments on their first homes with personal savings (59 percent), followed by financial assistance from parents (17 percent), then by taking advantage of a "no-money down" mortgage (16 percent).

When it came time to purchase a second home, 64 percent of respondents used money from the sale of their previous home for the down payment, with 35 percent using their personal savings for that purpose.

The survey results imply that the respondents feel financially secure relative to the cost of housing. A stunning 81 percent of respondents do not consider themselves "house poor," with 59 percent of those surveyed indicating that they pay 30 percent or less of their net income towards their monthly mortgages.

However, while the survey's respondents display financial savvy in terms of real estate, that fiscal sophistication appears to be more rooted in the present for the younger generations surveyed.

Sixty (60) percent of Baby Boomers said they would bequeath their home to their children or another relative. However, only 10 percent of those younger respondents (aged 41 or less) expecting the home said they are factoring those proceeds into their retirement planning.

While marriage or the establishment of a permanent relationship drives entry into homeownership, other life events play a role in the evolution of homeownership. As Americans age, they have more opportunity to own a second home.

The study revealed that respondents in the Baby Boomer and older age groups are 70 percent more likely to own a second home or vacation home than the younger generations.

Homebuyers are also taking aging needs into consideration when they think about homes. Nearly one-third (28 percent) of respondents aged 42 and older said they prefer ranch (one story).

When considering late life living arrangements that may include living alone, 48 percent of respondents aged 61 plus who indicated a preference said that they would rather remain in their current residence. Thirty-four (34) percent would prefer to move into a smaller residence or a condominium on their own.

Sixty-three percent of our respondents indicate that over the past three years they have not taken equity out of their homes, and 77 percent do not expect to in the coming years.

While they may need to pack up and move according to job, relationship or lifestyle needs, at the end of the day, Americans still consider a house a home.