The Influence of Friends & Family on Home Purchases
For many of us, the holidays are the time of year dedicated to spending with family and friends. For some, this is the only time of year that allows for such precious family time. Being able to see our families every day can be a gift, and for many home buyers having the option to do so can impact the home they purchase.
This holiday season, lets take a look at how the family and friends of recent home buyers influenced 1) the type of home they bought, 2) the primary reason they bought, and 3) where they bought.
According to the 2015 Profile of Home Buyers and Sellers recently released from the National Association of Realtors, this year 13% of all buyers purchased a multi-generational home—a home that had adult siblings, adult children over the age of 18, parents, and/or grandparents in the household.
WHY did buyers purchase a multi-generational home?
- 22% of buyers did for the health and care taking of their aging parents
- 14% reported they purchased a multi-generational home for cost saving reasons
- 12% of buyers did it so that children or relatives over 18 could move back into the house
- 8% chose a multi-generational home so they could spend more time with aging parents
- 8% did because of children or relatives over 18 that never left home
The PRIMARY REASON for buying a home
From relocating for a job to downsizing after retirement, there are many reasons why people decide to buy a home, the number one reason being that buyers (30%) simply desire to own a home of their own. For 7% of home buyers, staying close to family, friends, and relatives was the primary reason for their purchase. For single females, this number was even higher at 9%. On the selling side, the primary reason 16% of people decided to put their home on the market in 2015 was so they could move closer to family and friends.
Deciding WHERE to buy a home
Even if the primary reason for buying a home was unrelated to family and friends, 35% of home buyers claimed that their neighborhood choice was influenced by how convenient it was to friends and family. In fact, for single females this was the second most influential factor when it came to choosing which neighborhood to live in.
Whether this holiday season makes you may wish you lived next door to your family or across the country from them, you’ll likely understand how family and friends impact the decisions of so many home buyers.