Updated Study Details Characteristics of New-Home Buyers
Using newly published government data, NAHB's economists have updated an earlier study on home buyer characteristics to show how different buyer subsets have evolved in recent years. Among other findings, the study notes that 8% of the 6.8 million households who purchased a home between 2009 and 2011 bought new construction.
This is down from the 17% of those who chose to purchase a new home in the 2009 study, despite the fact that a recent NAHB consumer survey showed that 55% of home buyers would actually prefer to purchase a new home. The latest 2011 data also reveal that 46% of purchasers over the previous two years were first-time home buyers.
This compares to 35% of home buyers who were first-timers in 2007, and 41% who were first-timers in 2009. Meanwhile, new-home buyers in the latest study had a median income of $81,715, compared to a median of just under $60,000 for first-timers and approximately $65,000 for all buyers. See below for additional highlights:
- The median age of new-home buyers is 38 years, while the median age of first-time buyers is 31 years and the median age of trade-up buyers is 47 years.
- New-home buyers look at a median of 6 new homes before making a purchase, versus buyers of existing homes who look at a median of 10 homes.
- In 2011, the median income of new-home buyers was 26% higher than that of all home buyers. This spread has been increasing since 2005, and is currently the largest seen in more than 10 years.
- While the average household size for all home buyers has been declining in recent years, it increased marginally (to 2.79 persons) for new-home buyers in 2011.
- The median market value of a new home purchased between 2009 and 2011 was $230,000, versus $162,000 for an existing home. There was a 35% difference between the market value of a new home and that of all homes purchased, which is the largest the spread has been since 2001.
- The median size of new homes purchased from 2009-2011 was 2,100 square feet. This compares to the median size of existing homes purchased during that time, which was 1,750 square feet.
Court Settlements Provide Millions for Remediation of Chinese Drywall
Five class-action settlements approved by a federal court on Feb. 7 will make available millions of dollars to remediate homes built with Chinese drywall. The settlements, which are expected to benefit more than 10,000 property owners, effectively end the Chinese Drywall Multidistrict Litigation, resolving all claims, counterclaims, and third-party claims among the settling parties. Companies for which the settlements were certified include: Interior/Exterior Building Supply, LP; Banner; L&W Supply Corp.; Knauf; and global participating builders, suppliers, and installers. Note that this does not include Taishan entities, which are not settling and continue to argue that the court has no personal jurisdiction over them. That issue is currently the subject of a case before the Fifth Circuit Court of Appeals. Below are details applying to only those parties involved in the Feb. 7 settlement agreements:
Interior/Exterior Building Supply, LP (In/Ex) Settlements
- Tags: ADI News
- Joanne Loftus