Condo Owner, Renter Preferences Little Changed by Downturn
The preferences and choices of condominium owners and renters living in multifamily residential housing have not significantly changed since the housing downturn knocked the condo market flat and severely reduced rental apartment development, according to NAHB’s 2009 survey of condo owners and renters.
While owners and renters cited lower housing prices as one of the top reasons to move, according the survey, NAHB economists comparing the 2009 survey results with those of a similar survey in 2004 said they were surprised that respondents indicated so few changes in preferences over the last five years.
The full survey results will be presented from 3:30-4:30 p.m. on Wednesday, Jan. 20, at the Apartment and Condo Meeting Place, Room North 254 of the Las Vegas Convention Center, during the 2010 International Builders’ Show.
According to the survey, condo owners ranked “low condo/house prices” just behind “needing a larger unit” as their top two reasons to move. A majority or renters indicated that “wanting to buy” was among their top reasons for moving.
According to the survey, slightly less than a third of condo buyers and renters reported that they would move to a smaller unit in a central city location, while 68% of both groups said they preferred a larger unit farther out in the suburbs.
When asked if low interest rates were encouraging them to buy, around two-thirds of both groups — 61% of condo owners and 68% of renters — said no.
Only about 24% of condo buyers but a full 61% of renters expressed concern about qualifying for a loan. Most prospective buyers — 62% — said they anticipated that their downpayment on a future home would come from equity from the sale of their current home. Only 20% expected that a downpayment would come from savings.
Regarding renting versus homeownership, among renters, 45% said they planned to continue to rent while only 35% planned to purchase a home or condo, according to the survey.
Among condo owners, however, the great majority, 70%, said they expected to purchase their next residence.