NAR Research is joining in on the currently popular 10-year challenge. Let's do the 10-year challenge: home buyer edition. For accuracy, let's compare 2011 to 2021.
The price of homes purchased in 2011: $169,000. The price of homes purchased in Q3 of 2021: $363,100. This equates to positive equity gains of $225,000 for homeowners over that time period. The interest rates for a 30-year fixed mortgage in 2021 was 3.1%, while the rate in 2011 was 4.45%.
In 2011, the First-Time Home Buyer Tax Credit had expired, and the share of first-time buyers dropped from 50% in 2010 to 37% in 2011. In 2021, with low inventory, rising prices, high rents, and student debt, the share is just 34%. The typical age of a first-time buyer in 2011 was 31. In 2021, the typical age of a first-time buyer was 33.
In 2011, following the Great Recession, many were on the lookout for a job change. Among home buyers, 10% of buyers moved due to a job relocation. Today, many are willingly changing careers, but with remote and hybrid work patterns, only 5% of recent buyers moved due to a job relocation.
In 2011, 77% of buyers purchased a detached single-family home. In 2021, that share has grown to 82%. Buyers are seeking more square footage for remote work, home schooling, larger kitchens, and private yards, which a detached home provides. The majority of buyers are purchasing in suburban areas which is more likely to have detached single-family homes instead of condos and townhomes.
The home search process for most buyers starts online. In 2011, 88% percent of buyers used the internet in their search process. In 2021, 95% of buyers used the internet in their search process. In just one decade, buyers have increased the online tools they use, adding in virtual and video tours, interactive floorplans, and interactive maps of neighborhoods.