Single homebuyers find buying a home more cost effective than renting

Single homebuyers are more fiscally conservative when it comes to their home purchases, according to a recent survey conducted for Coldwell Banker Real Estate.
Diann Patton, Coldwell Banker Real Estate consumer specialist, said, “Our survey showed that 68 percent of single homebuyers didn’t buy at the top of their price range. It seems that people are getting more educated about the homebuying process and while they want to purchase a house, they still want to have some disposable income left over.”
Coldwell Banker Real Estate is seeing an influx of single, first-time homebuyers taking advantage of more affordable home prices, larger inventory, low interest rates and federal tax incentives.
“We are finding the current housing environment to be the ideal marketplace for many people who may have never considered buying a home before, such as singles and other first-time buyers,” Patton said. “They can afford much more house for their money than they may have been able to in previous years. Many are recognizing that a mortgage payment on a house can actually be the same or less than what they would spend on rent.”
According to the survey, more than half (53 percent) of single homeowners reported that they purchased a home because it was more cost effective than renting in their area. However, more than just financial analysis contributed to their decision. The desire for independence played a role for more than one-third of single homeowners (35 percent) according to the same survey.
Patton said the desire for independence was a top priority for many of the homebuyers but the results did surprise them about where singles chose to live. “We assumed that single homebuyers were looking for bachelor or bachelorette pads in urban areas. The survey actually showed that more singles are buying in the suburbs,” she added.
According to the National Association of REALTORS® 2009 Profile of Home Buyers and Sellers, 21 percent of recent home buyers were single females and 10 percent were single males. The biggest difference between women and men surveyed for the Coldwell Banker report was that women were more interested in having more bedrooms in their house.
Additional key findings from the April 2010 survey:
Modernized home updates and appliances and having a yard and outside space were rated as the most desirable features in a home over lesser considerations like space for entertaining.
Fifty-five percent have less than a 30-minute commute to their office or work from home, and 40 percent live less than 30 minutes or even in the same neighborhood as their parents or extended family. In fact, an additional 12 percent live with at least one family member.
Singles don’t shy away from buying foreclosures – especially single men. Thirty-eight percent would currently consider purchasing a foreclosed / short sale home, compared to 29 percent of single women.