Families Impact Homebuying Decisions in Main Line Real Estate More than You Might Think
When in the market for Main Line real estate, do you choose your new home, or do the children decide? You do, of course, however according to a new report by Bank of America, family does play a large role in the types of homes that home buyers eventually choose. In fact, the study reports that 63% of homebuyers say that their children play a role in the type of home that is purchased. Among first time buyers, the percentage goes up to 74%.
What Kind of Role Does Family Play in Homebuying Choice?
According to the Bank of America report, over 80% of homeowners or those who are planning to purchase their first homes, have no expectation that an extended family member will live with them. However, depending on the generation, from 47% to 60% of those respondents were open to the concept of multiple generations in the household.
The biggest impacts of family on homebuying comes from the nuclear family, of course. Parents with young children may choose Main Line real estate in neighborhoods with amenities or great schools. Those with college age or adult children who will live at home may make choices with particular floor plans or with lower payments, as 64% of those with ”boomerang” children will charge them no rent.
Parents’ Choice to Own Correlates to Adult Children’s Homeownership Rate
Interestingly, adult children are also influenced by parental choices. Last year, a study by Trulia noted that homeownership was at its lowest point in 51 years, and pointed out the correlation that children who lived in a home owned by their parents were almost three times as likely to buy a home as those whose parents rented their house. To some extent, parental assistance played a role, as parents who owned their homes tended to provide financial assistance more often than those who rented (58% v 32%). However even among those who received no assistance, the percentage of homeownership among adult children of parents who owned homes was higher than among those whose parents rented. Some see this correlation as a possible partial explanation for the overall lower rate of homeownership of millennials.
Trust Sage Realty for Main Line Real Estate Guidance
With this information in mind, you might make different decisions in remodel plans if you are considering selling within a few years. Sage Realty is well-informed about the Main Line real estate market, and you can be sure that the Sage team is committed to helping each client find the right home solution. If you are in the market to buy or sell Main Line real estate, contact us today.