SAN FRANCISCO, Dec. 7, 2017 /PRNewswire/ -- Trulia®, a home
and neighborhood resource for homebuyers and renters, today
released its 2018 Housing Outlook Report. Heading into the new
year, Trulia Chief Economist Ralph
McLaughlin shares his predictions for the housing market in
2018:
Tax Plans May Help Cool Expensive Coastal Markets: As
Washington nears a tax overhaul
that shifts burdens for homeowners, the luxury market and housing
markets in expensive, high-tax states in the Pacific West and
Northeast might see cooling. This could include slowing home price
growth, new construction and existing home sales.
Homeownership Rate Will Continue to Climb: 2017 saw the
first significant increase in the homeownership rate in over 10
years. Meanwhile, the number of owner-occupied households grew
faster than renter households for three consecutive quarters—a
first in 12 years as the number of renter households fell for two
consecutive quarters. As Gen Xers transition back from renting to
owning and more millennials become homeowners, the homeownership
rate will continue to increase as it has trended in 2017, albeit
slowly.
Trulia's Top 10 Housing Markets Poised for Growth
Trulia identified 10 housing markets to watch in 2018 among the 100
biggest markets, based on five key metrics: strong job growth over
the past year, low vacancy rates, high starter-home affordability,
more inbound than outbound home searches on Trulia and a large
share of people under age 35 in the population as a measure of
prospective first-time homebuyers.
- Grand Rapids, Mich.
- Nashville, Tenn.
- Raleigh, N.C.
- El Paso, Texas
- San Antonio, Texas
- Fort Worth, Texas
- Austin, Texas
- Columbus, Ohio
- Madison, Wis.
- Cincinnati, Ohio
Key Findings from Trulia's American Dream Survey
The report also includes findings from Trulia's annual survey of
American sentiment on homeownership in the year ahead, which was
conducted online by Harris Poll of more than 2,000 Americans age 18
and older.
Rising Home Prices Becoming Bigger Obstacle, Many Plan to Buy
After 2020
One in four Americans (25%) believe buying a home in 2018 will be
better than in 2017—the same as those who say it will be worse
(also 25% of Americans). One possible reason for the split
sentiment: 40% of American renters who desire to buy a home say
rising home prices is their biggest obstacle to homeownership—the
highest level reported since 2013 when only 22% said the same.
Perhaps as a result, only 10% of Americans plan to buy a home as
their primary residence in the next 12 months while 41% plan to
wait at least two years.
Rising Optimism for Home Selling Unlikely to Ease Tight
Inventory Immediately
Nearly one in three Americans (31%) think 2018 will be a better
year for selling a home than 2017, versus 14% who think it will be
worse—a 17-percentage point differential, which is the highest
differential since 2014 (20%). This spells good news for the
current inventory crunch, but relief may not come for a few years
as only 6% of homeowners plan to sell their home in 2018.
73% of Millennials Aspire to be Homeowners, But Saving Money
Remains Key Obstacle
Today, 73% of Americans aged 18-34 say
homeownership is part of their personal American Dream; however,
this majority is below 2015's level of 80% expressing this same
sentiment. Yet for many millennials, their homebuying plans aren't
happening soon: 65% who plan to buy a home one day said they don't
plan to do so until at least 2020. Why are they waiting? Perhaps
lack of funds—saving for a down payment is one of the
greatest obstacles to homeownership (66%), along with rising home
prices (47%) and qualifying for a mortgage (37%) for millennial
renters who want to buy a home.
Natural Disasters Causing Homeowners, Homebuyers to Rethink
Where They Live
After 2017's array of floods, hurricanes, wildfires, and other
natural disasters, 39% of Americans say they are more concerned
about the potential threat of natural disasters affecting their
homes, with a higher proportion of those in the hurricane- and
flood-ravaged South expressing concerns (43%). Only 5% of Americans
are less concerned about this potential threat. More tellingly, a
majority of Americans said the potential for the aforementioned
natural disasters – floods (72%), hurricanes (61%) and wildfires
(58%) – would influence their home searches if they were looking to
purchase a home.
Quotes from Trulia's Chief Economist Ralph McLaughlin:
"Homeownership will continue its comeback story in 2018 as Gen
Xers who were hard-hit during the Great Recession become homeowners
again, and as more millennials buy homes for the first time. But
homebuyers won't be without challenges as they'll still face low
inventory, slow wage growth and expensive starter homes. For
millennials, they have the added hurdle of saving enough money to
make a down payment and make competitive offers amid rising home
prices."
"Amid 2017's slew of natural disasters, future homebuyers may
rethink where they live. But the desire to become a homeowner
remains strong enough so these concerns are only likely to deter
demand in the most vulnerable of locales."
Survey Methodology
This survey was conducted online within the United States between November 9th and 13th, 2017
among 2,188 adults (aged 18 and older) by Harris Poll on behalf of
Trulia. This online survey is not based on a probability sample and
therefore no estimate of theoretical sampling error can be
calculated. For complete survey methodology for this survey or
previous surveys, including weighting variables and subgroup sample
sizes, please contact pr@trulia.com.
About Trulia
Trulia®is a vibrant home shopping marketplace, focused on giving
homebuyers, sellers, and renters the information they need to make
better decisions. On mobile and the Web, Trulia provides house
hunters with insights and unique information about properties,
neighborhoods, and real estate agents. Additionally, Trulia offers
data and information about schools, crimes, commute times, and the
real estate market.
Launched in 2005, Trulia is based in San Francisco and is owned and operated by
Zillow Group, Inc. (NASDAQ: Z and ZG).
Trulia is a registered trademark of Trulia, LLC.
MEDIA CONTACT:
Debbie Baratz
pr@trulia.com
415-757-2299
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