“Forever Homes” are a thing of the past according to a recent survey by Wakefield Research. On behalf of Taylor Morrison, a national homebuilder and developer based out of Scottsdale, Arizona, Wakefield Research reviewed 1,000 adults who have either purchased a home in the last three years or are planning to in the next three. They found that 56 percent of overall homebuyers and 58 percent of millennial homebuyers expect to move again due to changes in lifestyle
Due to the amount of planning and stress that goes into new home construction, the perception may be that the buyer would stay in their home for a long period of time. Though millennial homebuyers do prefer new construction, they only intend to stay in their prospective homes for less than 10 years. With less tenure in the home, it is more important for the floor plan to fit their current lifestyle than to adapt to one that is not ideal. Twenty-six percent of buyers say that this is not just a focus, but the focus when house hunting.
“Understanding the lens in which homeowners and homebuyers are seeing the market is integral to our strategy," said Sheryl Palmer, Taylor Morrison President and CEO. "In the last decade so much about the housing industry has changed—from locations where people want to live, to the types of homes people want to buy.”
Of those surveyed, owning a home that is specific to their lifestyle is attractive enough to take on low double-digit interest rates before getting deterred by the home buying process. Millennials, in particular, saying they would take on even higher interest rates.
"While we are unlikely to see double-digit interest rates in the foreseeable future, consumers' tolerance for higher potential rates signal a real commitment among prospective buyers to make their home purchase a reality," said Tawn Kelley, Taylor Morrison Home Funding EVP and President of mortgage operations. "Customers appreciate that we may be heading into a rising interest rate environment and are not deterred by the potential for further rate volatility going forward.”