Here's what matters most to Denver home buyers
Bank of America report reveals cost and neighborhood top the list
Denver metro area home buyers are seeking a home for practical reasons, as the majority (58 percent) see homeownership as a financial investment, according to the inaugural Bank of America Homebuyer Insights Report. As such, more than half are buying for the first time because they believe their money would be better spent on a mortgage than rent, compared with 37 percent of home buyers nationally who say the same.
When considering a prospective home, cost (83 percent) and neighborhood (54 percent) are extremely important to Denver area buyers. Fifty-three percent also consider the floor plan and layout to be very important. More than three-quarters of Denver buyers are interested in buying a single-family home and 59 percent are looking to settle down in the suburbs.
The Bank of America Homebuyer Insights Report explores the attitudes, behaviors and preferences of the modern home buyer, based on a national survey of more than 1,000 adults ages 18 and older who want to buy a home in the future. In addition, 300 adults were also surveyed in 10 local markets: Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, New York, San Francisco, Seattle and Washington, D.C. The report reveals what home buyers want in a home, their catalysts for making the home purchase and the unique preferences of first-time and millennial buyers, defined as those between ages 18 and 34.
Denver-specific highlights from the report include:
Denver area home buyers are driven by aspiration and emotion
- Aspirational and emotional factors motivate more than three-quarters of Denver first-time home buyers. When making the decision to buy a home, 59 percent say they want a place to call their own, 45 percent cite owning a home as something they have always wanted to do and 33 percent want a place to put roots down.
- Denver buyers define homeownership as responsibility (65 percent), security (62 percent), happiness (60 percent), and a place where memories are made and kept (60 percent).
Aspiring Denver homeowners want to save more, willing to sacrifice
- Seventy-two percent of Denver first-time buyers have not purchased a home before now because they did not think they could afford a home or the type of home they would like to buy, significantly higher than the national average of 56 percent.
- Nearly all (94 percent) first-time buyers in Denver would be willing to make sacrifices to make homeownership a reality.
- Seventy-six percent of experienced Denver home buyers sacrificed something the last time they purchased a home.
- Seventy-two percent of local first-time buyers are looking for a home that they can grow into, rather than one that fits their needs today. This is consistent with first-time home buyers nationally, as 75 percent say the same.
Saving for a home as important as saving for retirement
- Ninety-two percent Denver buyers consider saving for or paying off a home to be important. A similar number (87 percent) believe saving for retirement is important.
- Understanding the importance of saving for a home, many local first-time buyers said they would appreciate help doing it: 73 percent would use a tool that withdraws money from their paycheck to save for a home purchase.
- One-quarter of experienced Denver home buyers spent more than what they budgeted on the total cost of their first home.
Local millennial home buyers expect support from their parents
- Fifty-four percent of millennial home buyers in Denver expect some kind of assistance from their parents when buying a home, ranging from financial support to assistance moving in.
For additional information about the Bank of America Homebuyer Insights Report, please click here.
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About the Bank of America Homebuyer Insights Report
Braun Research, Inc. (an independent market research company) conducted a nationally representative, online survey on behalf of Bank of America January 27–February 21, 2016. Braun surveyed 1,001 respondents throughout the U.S., comprised of adults 18+ who want to buy a home in the future. In addition, comparatively 300 adults were also surveyed in 10 local markets: Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, New York, San Francisco, Seattle and Washington, D.C. Braun also interviewed a total of 801 millennials (defined as 18–34 years old) in the national U.S. sample.
Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company serves clients through operations in all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.