Real estate is one of the most important investment a consumer can make. Whether it’s a commercial or residential property, real estate can be a source of income and an asset that increases in value. To better understand the state of the real estate market in 2018, here are 13 recent consumer statistics about the residential and commercial real estate market.
- Nationally, home prices increased year over year by 6.6 percent from January 2017 to January 2018, and on a month-over-month basis home prices increased by 0.5 percent in January 2018 compared with December 2017. (Source: CoreLogic)
- After falling 33 percent during the recession, prices in most markets have returned to peak levels, growing 51 percent nationally since bottoming out in March 2011. (Source: CoreLogic)
- Nearly nine in ten U.S. homeowners (87 percent), have not experienced a rise in the interest rate of their mortgage/home loan during the time they have had it. (Source: HSBC)
- Most prospective buyers (73 percent) plan to pay up to 20 percent of the purchase price as a down payment to secure a mortgage and will largely rely on their regular savings (72 percent) to help them achieve this. (Source: HSBC)
- U.S. homeowners who hold a mortgage took an average of four years to save for their deposit, with those in France taking longest to save up (7 years). By comparison, those in the U.K. took only 3 years to save for their down payment. (Source: HSBC)
- A quarter of U.S. adults (25 percent) felt commercial real estate investment has the biggest impact on enhancing the reputation of a community. (Source: RealtyShares)
- Roughly one in five of those who have or are currently investing in commercial real estate have done so for reasons that may support their community, like helping a friend or family member with capital for a commercial real estate investment (20 percent) or needing a facility for their own business (17 percent). (Source: RealtyShares)
- The majority (53 percent) of Americans would invest in commercial real estate within their communities if given a chance. (Source: RealtyShares)
- Three out of five (61 percent) consumers believe they lack the necessary funds to get started in commercial real estate, while 19 percent say the don’t know how to invest in the market. (Source: RealtyShares)
- Nearly nine out of 10 Americans (89 percent) have never invested in commercial real estate, according to the report.(Source: RealtyShares)
- A 2018 survey found 67 percent of Americans ages 18-34 would invest in local commercial real estate if given the chance (compared to 45 percent of adults ages 45+). (Source: RealtyShares)
- According to the National Association of Realtors, 70 percent of homeowners settle for the first real estate agent they find. (Source: NAR)
- In a Harris Poll survey of more than 2,000 adult Americans, Trulia found that Americans’ favorite home styles are craftsman (43%), ranch (41%) and colonial (36%). (Source: Trulia)
The real estate market generates billions of dollars in sales each year, so there is a tremendous value in learning about the factors that determine when and how much consumers are willing to spend. Just knowing that many consumers see commercial real estate investment as a way to improve a community presents several new ways to market properties in areas in need of redevelopment.
For more interesting statistics about real estate, read this article on the best retirement destinations based on health and cost of living. And check out the interesting statistics series for random data about consumers and business.