Why Do People Actually Buy a Home?

It seems that every time we talk about real estate today the conversation immediately goes to the financial aspects of buying a home. Where are prices headed? Where are interest rates headed? Should I wait to try and get a ‘better buy’? Should I wait until I can get a ‘steal’?

The odd thing about all these questions is that survey after survey keeps telling us that price is not the reason families actually buy a home. When money is considered at all, it is in light of not paying rent to a landlord. Let’s look at two recent surveys as examples:

National Housing Survey

The top five reasons given in the survey for buying a home, in order, are:

1.) It means having a good place to raise children and provide them with a good education
2). You have a physical structure where you and your family feel safe
3). It allows you to have more space for your family
4). It gives you control of what you do with your living space (renovations and updates)
5). Paying rent is not a good investment

The Myers Research and Strategic Services Survey
The top five reasons given in the survey for buying a home, in order, are:

1). Home ownership provides a stable and safe environment for children and other family members
2). Home ownership means the money you spend on housing goes towards building equity, rather than to a landlord
3). Home ownership creates the opportunity to pay off a mortgage and own your home by the time you retire
4). Home ownership creates the opportunity to live in a neighborhood that you enjoy
5). Home ownership allows you the right to decorate, modify and renovate your home as you see fit

Bottom Line

Price dominates conversation when we talk about buying a home. However, when it comes down to it, we actually buy for the same reasons our parents and grandparents did – we want a better lifestyle for ourselves and our families.

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