The results of Trulia’s latest American Dream survey indicate that optimism about the real estate market abounds in all areas. Sixty-one percent of Americans think that home prices in their local market will rise in the next year and 58% of Americans believe local home prices will return to their previous bubble-level peaks within the next 10 years! Interest in super-sized McMansions is also on the rise once again: Twenty-seven percent of Americans say their ideal home size is over 2,600 square feet, vs. 17% in 2011, and while only 6% of those surveyed in 2011 expressed desire for a super-sized home over 3,200 square feet, 11% now say they want a home of this size or larger.
Sentiments among renters have also improved. Seventy-eight percent of renters said that they plan to purchase a home someday, up from 72% in 2011, and 27% of renters want to buy in the next two years, compared with only 22% in 2011.
Renter expectations also indicate that those looking to buy their first home are in need of a reality check. In the survey, we asked current renters which amenities they would love to have in their first home and compared the results to the number of buyers who reported having these same features in their first homes. The results clearly indicate that most renters have unrealistic expectations about their first home. At the top of renters’ lists were a master bathroom (62%), walk-in closet (56%), and gourmet kitchen (50%). However only 26% of buyers reported having had a master bath in their first home, while just 35% had a walk-in closet and only 9% had a gourmet kitchen.
The infographic below shows more data on amenities that renters want vs. what first-time buyers get so you can help manage your clients’ expectations and steer them in a direction that’s less likely to lead to disappointment. Hint: Wood floor dreams vs. realities show the lowest discrepancy of all the features on the list.