Consumer market data and psychographics - Research Paper Example

Attributes of Homebuyers in the United s Real e is a large industry in the United s with sales of houses constituting a large part. Homebuyers fall into two broad categories that are first time buyers and move up buyers. Statistics from the NAHB (National Association for Home Builders) are utilized in the analysis presented below to create a clearer market picture. The first part is based on attributes of homebuyers while the second part is based on the behavior of homebuyers. The average age of first time buyers is 33 years while the bulk of these buyers are under 35 years of age at some 66% of the total.

In contrast move up buyers have an average age of 45 years with the age range of less than 35 years to 54 years possessing nearly the same composition. The average household size of first time buyers is 2.7 in contrast to 2.8 for move up buyers that signifies small family units. First time buyers earn just over $ 64,000 while move up buyers have earn just over $ 84,000. Most first time buyers are married couples with kids at 31% followed by single males (22%) and couples with kids (21%). On the other hand, move up buyers can be married with kids (35%) or married without kids (32%) in greatest probability.

In terms of ethnicity, white non-Hispanic buyers form the greatest share of buyers with first time buyers at 66% while move up buyers stand at 82%. Most first time buyers were already renting (77%) while only a small proportion are shifting out of other households (16%). Move up buyers are already previous owners so no such distinction is made. Based on the data presented above, a few things can be surmised reliably. The average homebuyer is a non-Hispanic white and belongs to a middle income group.

The size of the family is small. The first time buyers are most likely to be married couples without kids followed by married couples without kids or single males. First time buyers are highly likely to be renting before purchasing a home and are likely to be in their late twenties or early thirties. However, move up buyers can range in age from their late twenties to the mid fifties. Buying Behavior of Homebuyers in the United States Most homebuyers will likely browse over 15 homes before settling in for a purchase with first time buyers displaying a 27% chance while move up buyers displaying a 29% chance.

First time buyers are most stressed out by cost considerations (31%) followed by the layout of the house (22%) and other concerns (20%). On the other hand move up buyers are more likely to go for the layout and design of the house (29%) and for other reasons (20%). Most homebuyers browsed more than one particular neighborhood before deciding on buying with little difference between first time buyers (63%) and move up buyers (62%). The biggest reason for buying a house in a particular neighborhood by first time buyers is for the house itself (23%) followed by other reasons (20%) and the looks and design of the house (18%).

In contrast move up buyers rely on the looks and design (23%), on the house itself (22%) and for other reasons (21%) for buying a house in a particular neighborhood.