More Singles are Buying Homes
You may have heard that home sales are strong, but did you know that single people buying homes are leading the way? According to MBS Highway, singles buying homes has tripled as of late from 5% to 15%. Single women in particular made up 17% of homebuyers in 2019, making them one of the fastest growing groups of homeowners today (National Association of Realtors).
Not only are single people buying more homes, they are buying on a tighter budget. 28% of single female homeowners in a survey by House Beautiful bought a home with a salary between $25,000 and $50,000, and 20% on a salary between $50,000 and $75,000.
The research done by House Beautiful suggest that many of today’s single home buyers see home investing as “always a good investment.” Much of this sentiment is based on the cost of rent going up and taking advantage of what Bigger Pockets has termed as House Hacking – renting out a room or part of the property to subsidize the cost of housing. Rebecca Scholand said she charged her boyfriend rent when he moved in. “It’s my house 100%,” she explained.
The biggest takeaway from our our research on single buyers is their need for more information. “Many first-time buyers are unaware of no money down options, grants, and government purchase programs that can keep costs and rates low enough for a single income,” says Mike Anderson, CMO of Intercap Lending.
Mike added, “Realtors and lenders who take the time to teach and advise their clients are in a better position to help more home buyers and capture more referrals. Our industry is so focused on the transaction right now that we forget the need for good advice and developing life-long relationships with our buyers.”
Casey Miller who bought a house in 2013 (interviewed by Beautiful Homes) said, “I think money is such a taboo topic that there’s so much you don’t learn.” Sentiments like this show how hesitant some can be in seeking out professional advice before making big financial decisions like buying a home. Realtors and lenders who advertise advisory services before the transaction are finding more opportunities to help people make smarter financial decisions. “Our favorite clients are the people who come to us two years out and want us to help them save, help them prepare,” said Denielle Lurie, founder of a realty team at Compass as published in the Beautiful Homes study.
Intercap Lending loan officers offer a Pathway to Qualification program to help first-time buyers get prepared to buy, providing a personalized snapshot of the buyer’s FICO score, down payment options, and debt-to-income goals needed to buy their first home. Intercap can even provide a detailed rent vs buy report based on the client’s current rent and cost of ownership.