As the Baby Boomers have reached retirement age, they are scaling down their living spaces and expenses. They will likely make-up the majority of the one in three U.S. households planning to move within the next five years.
According to Nielsen’s Demand Institute, US citizens of all ages will:
- Invest over $7.4 trillion purchasing homes
- $2.2 trillion renting
- $700 billion renovating their current homes to prepare them for sale
Making a decision regarding housing encompasses many factors: where to go; buy or rent, Most often two different things. The Demand Institute refers to this variance as the housing satisfaction gap. Recently the institute conducted a survey to identify the top ten features Americans want but don’t have in a residence. The first choice among those polled…Energy Efficient Homes. Surprised? You shouldn’t be.
It’s important to remember that utility bills represent a significant portion of household budgets on an ongoing basis. The Demand Institute’s survey revealed that “Average household spending on home electricity has grown 56% since 2000 – compared to 38% for other housing-related expenses.” But cost wasn’t the only consideration. Responses from a demographic that included several generations, both genders, and every socio-economic condition demonstrated a sound understanding of the impact of carbon emissions. They are tired of rewarding fossil fuel providers with higher fees for dirty energy. They want energy that is clean as well as affordable. Most importantly, citizens are clearly committed to leaving a safer planet for future generations.
Although Energy Efficiency was the first choice of home buyers, it wasn’t the only option they were seeking. Others included:
- Renovation ready – Approximately 78% of homeowners plan to invest on renovations to prepare their own homes for sale. When they buy, they will be seeking homes that are new or require little if any renovations
- Updated kitchens – Over 35% of homeowner respondents are unhappy with their present kitchens. Trends indicate home owners will be seeking to upgrade their kitchens and buyer will be looking for modern kitchens with energy efficient appliances
- Safe Neighborhoods – No matter the age bracket, homeowners want safer neighborhoods. Crime rate will play for those seeking to buy a new home
- Affordable homes – Homeowners want to be able to enjoy life as well as own a home. They don’t want to fall into that category known as house poor. According to the Demand Institute’s s poll, close to “40 million households in the U.S. are considered to have a housing cost burden because they spend 30% or more of their income on housing expenses”. Investigating the upkeep such as interior and exterior maintenance, lawn-care, and energy efficiency is just as important a considering the cost of the mortgage, taxes, insurance, and condo association fees (when applicable), etc.
- Space – Many respondents, particularly those with children are seeking homes with more storage space. Youngsters accumulate all kinds of things like books, toys, games, sporting equipment, etc. Adults require their fair share of space, as well. Storage always turns-out to be a plus
- Real Estate as an investment – According to the Demand Poll, 77% of Americans believe homeownership remains a solid investment
In the market for a new home and want to know what to look for? Planning on downsizing and want to make your home more buyer-friendly? Contact us today for more information on what an energy efficient home really looks like! 856-809-2744.