Location, Location, Location?

Tue, 01 June 2021  |  housing real estate 

A new survey from Regions Bank suggests the old real estate axiom of "location, location, location", may be getting turned on it's head. The survey indicates consumer sentiment regarding homeownership may have changed, in part due to the COVID-19 pandemic, with people prioritizing additional space, both inside and out, more so than prime locations.

According to the survey, roughly one in five Americans (21%) are planning to buy their first or next home or apartment in the next 12 months. When asked to select all items on their wish list, the top two responses were having room for family or friends to stay (30%) and wanting a large outdoor space (28%). In comparison, only 16% had living in a fun and vibrant location on their wish list.

While potential homebuyers may have their wish lists ready, the survey also finds many people could use help navigating the homebuying process. Key findings include:

• When asked about the barriers to buying a home, 26% saw saving enough money for a down payment as the most significant barrier to homeownership.
• Americans are not certain what percentage of a home’s price is required by mortgage lenders for a down payment. Almost one in three (31%) believed 6-19% would be required; another 30% said a down payment of 20% or more would be required; and 28% said they did not know.
• When asked about their knowledge of the homebuying process, only 35% of respondents said they are “very knowledgeable” about how credit affects their ability to buy a home.
• About one in four said they feel “not at all knowledgeable” about closing costs, loans, or home equity.
• Almost half have little to no knowledge about the types of loans available (48%) or the mortgage refinance process (44%).
• Even among homeowners, one in four (25%) said they are “not at all knowledgeable” about how much closing costs are, and 17% said the same about tapping into their home’s equity.

“For many of us, remote work, virtual learning and spending an increased amount of time at home over the last year has highlighted the need for ample space,” said Joye Hehn, Next Step financial education manager for Regions. “As people hunt for homes that check this and other boxes on their wish lists, Regions is committed to providing free tools and resources people need to be financially prepared for every step as a homebuyer and homeowner.”

The Regions Next Step omnibus survey questions were part of a national online survey that took place between March 26-29, 2021. The survey reached 1,244 U.S. adults. The results are weighted and are representative of all U.S. adults (18+).

Source: Regions Bank