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Consumer Banking

Confidence in Housing Market Reaches Highest Levels since 2014, Dallas Tops the List

Chase Launches Housing Confidence Index for National Homeownership Month

NEW YORK June 27, 2018 Today, Chase introduces a new housing confidence index in partnership with Pulsenomics showing record highs among U.S. homeowners and renters in three key measurement areas: their take on market conditions, aspirations for homeownership, and expectations regarding home values and affordability.

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Chase Housing Confidence Index: Housing Market Optimism Reaches New High

Chase and Pulsenomics connected with 3,000 homeowners and renters across the country to discuss the state of the housing market, as well as their expectations and aspirations for the future.

Confidence Remains High

  • 79% say now is a good time to sell.*
  • Most citing the large number of people looking to buy (nearly 50%)
  • 78% still believe “buying a home is the best investment a person can make”
  • Top Reason: “Lots of people are looking to buy”
  • 7 in 10 said owning a home provides a person with more freedom than renting

Top 10 Markets for Housing Index

  1. Dallas
  2. Denver
  3. Las Vegas
  4. San Francisco
  5. San Jose
  6. Orlando
  7. Seattle
  8. Phoenix
  9. Miami
  10. San Antonio

Renters are Reaching for Ownership

  • More than 6 in 10 renters said owning a home is “a specific goal I am determined to reach” or “something I think about a lot.”
  • 70% renters confident or somewhat confident that they will be able to afford homeownership in the future.
  • 70% of Millennials and Gen Z are looking to buy a home in the next 5 years – 1/3 in the next 2 years.

What matters when you’re ready to buy:

  • Safety of the neighborhood (53%)
  • Interior living space (28%)
  • Backyard (25%)
  • Commute to work (24%)
  • Those aged 65+ and 18-34 ranked proximity to family and friends more important than those in other age groups.  
  • Boomers ranked quality of schools and commute to work last on their list of priorities.

Landscaping Tops Kitchens in Desired Renovation Spaces

  • Top Renovation Spaces
  1. Landscaping
  2. Bathroom
  3. Kitchen
    Landscaping #1 for Millennials and Gen Z (41%) Want Instagram-worthy curb appeal
  • Timing: When to kick off renovation projects
    • Ready for Action (3-6 months out)
      • 37%
    • Planning Stages (1 year out)
      • 25%
    • Setting Goals (2+ years out)
      • 21%
  • 60% plan to finance renovations
  • $20k average amount borrowed

The Chase Housing Confidence Index is distributed in partnership with Pulsenomics LLC. Pulsenomics LLC is an independent research firm that specializes in data analytics, opinion research, new product, and index development for institutional clients in the financial and real estate arenas. For more information, please visit Chase.com or www.pulsenomics.com

*Of those with opinions

 

The Chase Housing Confidence Index™ (HCI) systematically measures and tracks key dimensions of consumer confidence in housing markets across the United States using data collected in the U.S. Housing Confidence Survey™ (HCS). Each edition of the newly-expanded HCI entails compilation of response data from more than 15,500 household surveys completed by homeowners and renters across the country. The index uses a 0–100 scale; levels above 50 are positive readings.

“These record results were driven by healthy assessments of local real estate market conditions among existing homeowners, but even more so by surging expectations among renters," said Terry Loebs, founder of Pulsenomics. “Seven in ten renters now express confidence in their ability to afford a home someday, and nearly three-quarters of those with an opinion say that buying a home is the best long-term investment a person can make.”

Western region households are leading the country’s housing market optimism. Dallas, Denver and Las Vegas, the three cities with the highest housing confidence levels, have all seen more than 8-point index increases since the 2014 inception of HCI.

Dallas also topped the list for strongest homeownership aspirations. Eighty percent of Dallas renters are confident they will own a home someday, while 70 percent plan to purchase in the next five years. Dallas has also seen a growing job market over the last few years with large corporations moving to the area, which may have added to this positive outlook on homebuying. More than 60 percent of Dallas homeowners said it is a good time to sell a home, with the majority citing the abundance of home shoppers as the most important reason.

Homeowners and Renters Agree it’s a Good Time to Buy and Sell

When asked if it was a good time to buy and sell a home, both homeowners and renters across the country agree that now is a good time for people to purchase. By a ratio of nearly three-to-one, the number of households who believe ‘now is a good time to buy a home’ exceeds the number who said now is a bad time. That ratio was even higher in the South and the Midwest regions of the country, where more than one-half of respondents said it was a good time to buy. Only 17 percent said it was a bad time to buy, with most citing affordability as their main concern.

“Affordability remains a top focus for buyers in the market today, but we are encouraged by the overwhelmingly positive outlook across the country,” said Amy Bonitatibus, Chief Marketing Officer for Chase Home Lending. “We have found innovative ways to address some of the affordability concerns by tackling the main barriers to homeownership with education grants, as well as down payment, closing cost assistance and low down payment products. Our Home Lending advisors are helping customers create customized plans for reaching homebuying goals.”

Renters

Nearly 60 percent of renters across the country are looking to buy in the next five years. Seventy percent of those renters are Millennials. The highest responses came from the South, where 62 percent are expecting to buy in the next five years and 33 percent looking to purchase in the next two years.

Fifty-three percent of renters said, when it comes time to buy a home, the most important feature will be neighborhood safety. Renters said the size of the home and the size of the backyard were the next top choices with 28 and 25 percent, respectively. Choosing between an urban or suburban setting was much lower on the list of priorities with 9 and 15 percent, respectively.

For Millennials, a short commute to work was ranked much more important than a suburban setting versus urban setting, with 31 percent saying commuting time was more important than location. Only 10 percent of Millennials said an urban setting was the most important feature in their home, while 11 percent said a suburban location mattered most.  

Landscaping Becomes a Top Renovation Priority

Homeowners are beginning to see their outdoor spaces as a prime makeover target, beating out kitchens and tying with bathrooms at the top of their renovation wish list.

Top Renovation Spaces

  1. Landscaping
  2. Bathroom
  3. Kitchen

“Everyone wants that Instagram-worthy curb-appeal,” said Bonitatibus. “Millennial homeowners ranked ‘new landscaping’ as their top choice for renovation. It is also an area of the home that can be more affordable to tackle immediately, and over 40 percent of these younger owners are looking to install new landscaping in the next few years.”

Of the survey respondents who said they were looking to renovate a space in their home, 60 percent plan to take out financing to complete their plans. More than a third say they are ready to take action in the next 3-6 months and another 25 percent are about a year out from kicking off. On average, they plan to spend about $20,000 to get the job done.

The Chase Housing Confidence Index (HCI) and U.S. Housing Confidence Survey™ (HCS) are produced by Pulsenomics LLC, an independent index, real estate intelligence and opinion research firm. This edition of HCI was derived from household survey data collected in spring 2018. To learn more about HCI and HCS, please visit www.chase.com or www.pulsenomics.com.

 


Media Contact
Keosha Burns Keosha.Burns@chase.com

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