8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
1/22
Summer Webinar Series:2013 Investment and
Vacation Home
Buyers Survey
Jessica Lautz
August 6, 2013
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
2/22
Methodology
Online panel
Based on representative panel of U.S. households
2,326 households respondedrepresents 2,751 home purchases
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
3/22
Share of Sales
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
4/22
Share of Home Sales
Primary65%
Vacation11%
Investment24%
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
5/22
Share of Sales 2012-2003
0% 20% 40% 60% 80% 100%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
22%
25
28
22
21
21
17
17
27
24
12%
11
12
14
12
9
10
10
11
11
67%
64
60
64
67
70
73
73
61
65
Investment
Properties
Vacation
Properties
Primary
Residences
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
6/22
BuyerCharacteristics
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
7/22
Buyer Demographics
PrimaryBuyers
VacationBuyers
InvestmentBuyers
Median Age 40 47 45
Median Household Income $76,600 $92,100 $85,700
Percent With 2 Income Earners 49% 48% 48%Racial/Ethnic Background
White/Caucasian 84% 78% 75%
Asian/Pacific Islander 7 10 14
Black/African American 6 10 8
Hispanic/Latino 4 4 4
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
8/22
Age Vacation and Investment Buyers
2005-2013
52
44 46 46 46
4950
47
49
39
42
47
45 45
50
45
35
37
39
41
4345
47
49
51
5355
2005 2006 2007 2008 2010 2011 2012 2013
Vacation Buyers Investment Buyers
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
9/22
Income Vacation and Investment Buyers
2005-2013
$80,600
$102,200
$92,100
$75,900
$90,250
$92,900
$85,700
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$110,000
2005 2006 2007 2008 2010 2011 2012 2013
Vacation Buyers Investment Buyers
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
10/22
Property Characteristics
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
11/22
Property Differences
Primary
Buyers
Vacation
Buyers
Investment
Buyers
Median Distance to Primary NA 435 21
Location
Small town 18% 21% 25%
Rural area 18 17 20Suburb/Subdivision 45 21 28
Urban area/Central City 18 21 20
Resort area 1 19 7
Type of Home
Detached single-family 82% 60% 58%
Townhouse or row house 5 10 12
Condo/duplex 5 12 10
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
12/22
Purchasing and Financing
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
13/22
First Step in the Home Search
Primary
Buyers
Vacation
Buyers
Investment
Buyers
Looked online for properties for sale 30% 26% 21%
Looked online for information aboutthe home buying process 14 18 10
Contacted a real estate agent 13 15 15
Talked with a friend or relative aboutthe home buying process 8 7 13
Drove-by homes/neighborhoods 7 6 10
Visited open houses 6 8 7
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
14/22
How Buyer Purchased the Home
0%
10%
20%
30%
40%
50%
60%
70%
Through a realestate agent or
broker
Foreclosure ortrustee sale
Directly fromowner whom
the buyer knew
Directly fromowner whom
the buyer didntknow
Directly frombuilder or
builders agent
69%
2
7 68
59%
1012
63
47%
12
17
53
PrimaryResidences
VacationProperties
InvestmentProperties
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
15/22
Difficulty of Financing
1419 21
2323
25
42 3938
21 20
16
0%
10%
20%
30%
40%
50%
60%
70%
80%90%
100%
PrimaryResidences
VacationProperties
InvestmentProperties
Less difficult than expectedNot difficult/nothing beyond what expected
Somewhat more difficult than expectedMuch more difficult than expected
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
16/22
Investment and Vacation Buyers Used a
Mortgage 2007-2013
7570 68 70
6358
53
6863
56
51
39
47 49
20
30
40
50
60
70
80
2007 2008 2009 2010 2011 2012 2013
Vacation Buyers Investment Buyers
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
17/22
Percent of Home Financed
Vacation Buyers Investment Buyers
Less than 70% 44 43
70% to 79% 23 24
80% to 89% 19 1890% to 94% 7 3
95% to 99% 3 5
100%Financed the entirepurchase price with a mortgage 5 8
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
18/22
Motivation and Expectations
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
19/22
Reasons for Purchasing Home
Vacation
Properties
Investment
Properties
To use for vacations or as a family retreat 80% 20%
To use as principal residence in the future 27 8
To rent to others 23 55To diversify investments/Good investmentopportunity 23 30
For a family member, friend or relative 11 16
Because the buyer had extra money to spend 11 7
For the tax benefits 10 15
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
20/22
Length of Time Plan on Owning
0%
10%
20%
30%
40%
50%
60%70%
80%
90%
100%
VacationProperties
InvestmentProperties
6 8
1418
1613
3029
31 26
Less than 1 year 1 to less than 6 years 6 to less than 11 years
11 or more years Dont know
Median=10 Median=8
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
21/22
Outlook of Buyers
47% of investment buyers and
37% of vacation buyers are likely
to buy an investment property
again in the next 2 years
31% of investment buyers and
29% of vacation buyers are likely
to buy a vacation property again in
the next 2 years
78% of vacation buyers and 78%
of investment buyers think its a
good time to purchase real estate
8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey
22/22
Where to find NAR Research
Jessica Lautz:[email protected], 202-383-1155
NAR Researchwww.realtor.org/research-and-statistics
Economists Outlook Blog:economistsoutlook.blogs.realtor.org
FaceBook: facebook.com/narresearchgroup
Twitter: twitter.com/NAR_Research
mailto:[email protected]://www.realtor.org/research-and-statisticshttp://economistsoutlook.blogs.realtor.org/http://www.facebook.com/narresearchgrouphttps://twitter.com/NAR_Researchhttps://twitter.com/NAR_Researchhttps://twitter.com/NAR_Researchhttp://www.facebook.com/narresearchgrouphttp://www.facebook.com/narresearchgrouphttp://economistsoutlook.blogs.realtor.org/http://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticsmailto:[email protected]