The Power of One: Singles Opt for the Advantages of Homeownership
By Brenda W. Casserly, President & COO, ERA Franchise Systems, Inc.
It may surprise you to learn that a recent study completed by the Joint Center for Housing Studies at Harvard University cited single-person households as one of the fastest growing housing markets in the country. In fact, nearly 5 million one-person households will be added in the coming decade.
As real estate professionals, we must stay aware of emerging trends to best understand the unique lifestyles of our clients. To understand the motivations of single home buyers, we should first look at the experiences, wants and needs that shape their home buying decisions and review some of the leading factors behind this growing trend.
According to the 2002 Census Report, between 1975 and 2002, the share of Americans who had never married increased from about 24% to 29%. Currently, about half of all adults are unmarried, and a single person living alone occupies one in four households. These figures are a sign of the times. Unlike days past, many people today have embraced a single life.
Changing societal norms and expectations, improved personal wealth, increasing rates of higher education, and even longer life expectancies for women, have all contributed to the rise in single-person households. So what are the changing norms and demographics that have positioned this customer base to drive a significant portion of the housing market?
Obviously, changing marriage trends and expectations are a leading factor in the increase in single-person households. Although between 80 and 90% of Americans will get married during their lifetimes, rises in personal wealth, length of education and changing attitudes regarding gender roles have resulted in both men and women delaying marriage until later in life. For example, one out of three men and more than one out of four women in their early 30s were unmarried in 1997, compared with fewer than one in 10 in 1900. Coupled with a divorce rate hovering around 50%, many single persons have grown accustomed to their lifestyle. They have the financial stability to live where they want and do not have immediate plans to marry (or remarry).
Perhaps of greatest interest, women actually make up a large portion of single home ownership. Their role in the housing market is expected to continue to accelerate as women's success in the workplace continues to expand and personal income disparities continue to narrow. An article in Business Week Online in June of this year reported that on average, women ages 25 to 34 earned 82% as much as men in 2000, as compared to only 68% in 1975. As this trend continues, expect to see even more financially independent women become home buyers.
Now that you have a better understanding of the characteristics and motivations of this emerging customer base, what are some factors real estate sales professionals need to remember to help these clients as they look to purchase a home? With only one set of hands at home instead of two or more, some singles opt for homes with lower maintenance features; including vinyl siding, brick, and vinyl windows to decrease the time devoted to maintenance. Others chose condos or town homes where exterior maintenance, landscaping, and snow removal are all handled by the homeowner's association for a monthly fee. In addition, some look for a tight-knit community that may be conveyed by having neighbors close at hand.
For seniors who are single, many choose to move to active adult communities that are specially equipped to provide wonderful amenities for a lifestyle of one including golf courses, pools, and recreation centers. Other seniors consider proximity to cultural centers, medical facilities, public transportation or family when buying a home.
Another factor sales associates should encourage single home buyers to consider is their future needs as well as the future resale value of a property. While a one-bedroom townhouse may be enough room now, it would not be if the buyer planned on marrying or having children in the near future. And while a single person may not mind having one bathroom, it could be a major detraction for a future prospective buyer looking at the house down the road. If they can afford it, buying slightly more house than they anticipate needing could very well be a wise investment decision for single home buyers.
As with any unique home buyer, taking a few extra minutes with a prospective single client can help you to learn about their current living situation, as well as their future plans. This will allow you to create a customized plan, specific to their needs and set the tone for a successful business relationship.
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