It is always good to know who your target market is when it comes to selling home properties. Whether you are listing homes in the Boca Raton luxury homes market or Coral Springs homes for sale, knowing who is likely to start house hunting can help you achieve the results you want. By knowing who is looking to buy can help you get your property in their sights.
Home Renters Turning into Home Buyers
The U.S. Census identifies 25 million households are renting apartments, while approximately 15 million are leasing single family home properties. Many renters would love to buy their own place. The question for real estate professionals is who are these potential home buyers and what is it that is holding them back from making the move into home ownership.
Uncovering the answer to this question was the objective of Freddie Mac, which recently published research focusing on the hidden identities of future home buyers.
According to the report, renters who are most likely to make the move to a home of their own are those renting single family home properties. These could be Boca Raton luxury homes, Weston luxury homes, townhouses or condos. Renters in these kind of places versus apartment dwellers identified themselves as wanting to move out of the rental market and into a place of their own.
Numbers and Objectives
When looking at the short term goals for their accommodations, 55 percent of responding renters expect to still be in a leasing situation over the next three years, according to the Freddie Mac research. This number didn’t vacillate whether the renter was living in single-family homes, multi-family properties, or apartments.
What did change was their long term objectives about becoming home owners, with 53 percent of single family renters expecting to buy versus only 36 percent of multifamily renters anticipating themselves to be in their own homes.
Satisfaction Could Be Key
One of the more interesting facts coming out of this latest research is that finances may not be the reason renters aren’t choosing to buy. The perception that people are renting until they can save enough money to purchase a home, whether it is Boca Raton luxury homes or Weston luxury homes, may not always be true.
Executive Vice President of Freddie Mack Multifamily David Brickman said that satisfied renters are more likely to continue to lease a place even if the rent rises. The recent Freddie Mac survey found 67 percent of those renting apartments reported satisfaction with their dwellings compared to 60 percent of renters of the single family property.
The lower number of satisfied renters living in single family property rentals may be related to their responses in wanting to buy, Brickman commented, although he did say this factor needs further research before conclusively tying satisfaction and buying potential together.
For now, realtors may want to target the single-family rental home market as the best place to find potential home buyers.
Number of Renters Keeps Climbing
Generally, across the U.S., the number of renter households is continuing to rise. For the 10th straight year, households of all sizes, age ranges, and income levels are renting their homes, according to the U.S. Census Bureau.
The increase in renters could be related to the number of millennials coming of age along with immigration.
