Purchasing a house is surely a historic event in one’s life. At the same time, however, house hunting can be quite a challenge. Housing statistics reveal some essential but unknown data a home hunter should be aware of.
The housing market covers a wide variety of elements related to the housing industry. Some of them are supply-and-demand, prices, availability, debts, ownership information, etc. To get a better insight into all the necessary information, you might want to analyze housing and market statistics. This way, you will familiarize yourself with prices, sales, trends, and affordability. The stats are here to help you obtain your dream home.
Top Housing Stats and Facts (Editor’s Pick)
- Homes spent an average of 59 days on the market before being sold
- 38% of home buyers are Millennials
- The average age of a house buyer is 34
- Homes listed on a Thursday sell for an average of $3,015 more
- 5.34 million homes were purchased in 2019
- A typical home is 1,500 sq. ft.
- Renting costs have increased in 65% of US counties
- The average rent in San Francisco amounts to $2,592
Housing Trends and Stats: What’s Going on in the Market
2020 has been a rough year. The coronavirus pandemic and accompanying lockdown have nearly devastated the global economy. The US was no exception. Historic dismissals and job losses, as well as market and economic volatility, had a terrible impact on US residents at all levels. Regarding housing markets, 2020 has been rather challenging. The second half of the year, however, saw a miraculous improvement.
1. The average home price was $320,000 in April 2020.
(Dave Ramsey, Realtor)
Housing pricing trends show positive movements despite both the global and national crises. In April 2020, in the midst of the coronavirus frenzy, prices of homes increased by a tiny but solid 0.6% compared to 2019.
However, the second half of May saw a concrete growth of 3% — the figure which equals pre-corona levels. The rise in prices may be excellent for sellers, as it automatically means fatter profits. Buyers, however, aren’t quite delighted with an increase.
2. The mortgage interest rate dipped to 2.39% in September.
(Dave Ramsey, Freddie Mac)
Housing interest rate trends have never been more favorable, considering mortgage rates. In May 2020, the interest rate for a traditional 15-year fixed-rate mortgage, i.e., the cheapest and most affordable alternative, declined to a record-low 2.69%, the lowest in 7 years.
The drop in the mortgage rate is a perfect opportunity for buyers to find their dream home without wasting way too much money on interest rates and rip-off mortgages.
3. Millennials make up 38% of homebuyers.
(Dave Ramsey, NAR)
People between the ages of 24 and 39 comprised the majority of new homeowners in 2019 Millennial housing trends note that nearly 40% of homes were purchased by members of this generation.
In 2019, Millennials and GenYers made up 37% of new home buyers. Boomers came in second with 32% of newly bought homes, whereas people between the ages of 39 and 53 year-olds made up 24% of new homeowners. About 7% of people between the ages of 73 and 93 purchased a new home.
4. With an average price of $410,100, homes in the West are the priciest.
(Dave Ramsey, NAR)
Housing trends acknowledge that location does matter, at least when it comes to buying a home in the US. In terms of regions, the West is currently the most expensive, with an average property price of a whopping $410,100.
Other regions are far cheaper. The average amount needed for real estate in the Midwest is $203,700, whereas the South is somewhat more expensive — $238,000. The Northeast is pricier, though not as much as the West, with an average of $295,400 paid for a home unit.
5. The average price of a brand new home was $329,750 in 2019.
(Dave Ramsey, NAR)
Housing market data confirms that, as expected, sparkling new homes were $85,000 more expensive than those owned before. Therefore, to buy a property that no one possessed before, you’ll have to pay a median of $329,750.
On the other hand, you’ll pay $245,000 for a previously-owned one. Though buying a brand new house spares you from the renovation and extra expenses, the majority of buyers consider all factors when purchasing a home.
American Housing Survey: What Was 2019 Like?
Last year was rather lucrative when it comes to real estate. With over 5 million home units sold, the real estate industry did exceptionally well. The reasons for buying a new home were different and varied from one generation to another. For those younger than 63, it was a wish to possess their own homes. Most people older than 63 wanted to be nearer to family or friends, and those aged 73 to 93 sought a small and cozy home for retirement.
6. There were 139,684,244 home units in July 2019.
(U.S. Census Bureau)
According to US Census housing data, July 2019 saw nearly 140 million home units. The rate of owners who occupied those units in the period between 2014 and 2018 was 63.8%. The average home value was $204,900, whereas the average rent per month amounted to $1,022.
Selected costs with a mortgage that owners had to bear between 2014 and 2018 were $1,558 per month. The ones without a mortgage were significantly smaller and amounted to $490 a month.
7. 2019 witnessed the purchase of 5.34 million home units.
Real estate market statistics estimate that nearly 5.4 million homes were sold in 2019. What’s more, this colossal figure refers to already existing units. There were also an additional 682,000 newly-built homes purchased. The figures show a drop compared to approximately 6 million in 2018.
8. A standard home is 1,500 sq ft large.
Housing statistics counted roughly 119.7 million inhabited home units in 2018. The typical resident moved into their own home somewhat less than a decade ago, in 2010, and their average age is 52. The size of a standard housing unit in the US is 1,500 square feet.
9. It takes an average of 73 days to find a dream home.
At the turn of 2019, homebuyers needed 73 days to find the home they sought, according to affordable housing statistics 2019. This is a decline from the 76 days in 2018 and flabbergasting 84 in the winter of 2016. The greatest year-on-year drops were recorded in Philadelphia, Houston, and Washington DC.
The residents in the cities managed to find a home 28, 17, and 14 days faster, respectively. Conversely, Miami and New York saw the highest jumps, as it took 17 and 13 days longer to hit the sought-after home.
United States Real Estate Statistics
Buying and selling property is a process that requires a lot of patience. Owners and buyers in particular states and cities have an easier time at it. Here are some interesting stats to consider before listing.
10. In February 2019, it took an average of 59 days for a home to be sold.
As more home units emerge on the market, the more it takes a home seller to find a buyer. US housing statistics reveal that, in February 2019, a home unit spent an average of 59 days on the market prior to being sold.
Compared to a year before, that’s an increase of 2 days. Location-wise, the East Coast metro areas market found its buyers a bit harder than the West Coast markets.
11. New York residents couldn’t find a new house for an average of 128 days.
Real estate statistics by city affirm that it was quite challenging to find a house in NYC. With an average of 128 days to find a perfect home, prospective buyers had a hard time acquiring their ideal home. In contrast, purchasers needed only 57 days to spot the desired house in Phoenix and Seattle.
12. 61% of home buyers were couples.
It’s no wonder that married couples want to have their own home. National housing market trends indicate that even 61% of buyers who purchased a home in 2019 were married couples. In contrast, 17% were single women, whereas 9% were single men. Similarly, 9% were unmarried couples.
13. 87% of buyers purchased a previously owned home unit.
Even though all prospective buyers would like to buy a brand new home, not everyone can afford it. In fact, according to housing market statistics, only 13% of buyers bought a new home. The remaining 87% purchased a house that was owned before.
The reasons for seeking new houses are renovations, plumbing, or electrical problems, and costs that come with buying a previously-owned house. 39% of buyers who opted for a new home unit wanted to avoid these issues. 33% of those who bought a previously-owned home contemplated the overall value.
14. Homes listed on a Thursday sell for an average of $3,015 more.
Housing data confirms that Thursday is the best day for a listing. Namely, real estate placed on Thursday tends to sell quicker and for a greater price compared to those placed on other days. Properties listed on Thursday were sold at a $3,015 higher price on average compared to those listed on Monday.
Houses sell well on other days too. As for housing datasets, Wednesday is the second-best day to list, with houses selling at a $2,620 higher price on average. Monday is by far the worst day for selling in terms of relative price advantage.
15. The average house buyer is 34 years old.
People in their 30s and 40s seem to prefer buying to renting homes. In other words, they tend to buy homes more often than their older counterparts. According to US housing statistics, GenY and Millennials were the most-frequent home buyers, making up 26% of the overall share. GenX was the second, with a 24% share.
Younger Boomers and Older Boomers came next, with 18% and 14%, respectively. The oldest, Silent Generation’s share was 7%.
The reasons for such figures are various. The most plausible ones could be that individuals who are turning 40 have formed a family and are now all ready to settle in their new home.
Stats and Fact on Housing Demographics
US citizens undoubtedly favor single-family houses. A typical home has two members, and it’s commonly a married couple. One-third of single-family households are with children. Similarly, rented apartments typically have one tenant. Below are some other interesting facts.
16. 30.4% of households are with children.
US housing market trends unveil that approximately one-third of households in America are with children. More precisely, 30.8% of single-family homeowners have children. A slightly higher percentage, 43.9% single-family renters are families with children as well.
Additionally, 21.9% of renters inhabiting multi-family homes are parents with kids. Lastly, the percentage of multi-family owners with children is only 10.7%, multifamily housing trends indicate.
17. 34% of households in America have 2 members.
The typical number of residents in US households is 2. In fact, one-third of the homes in America have 2 members. This amounts to 41.6 million homes.
28% of homes, that is, 34.1 million have only 1 member, while 22% or 27 million homes have 4 or more members, according to house stats.
18. Married couples live in 28% of US households.
Nearly 30% of home residents in America are married couples without children. This approximates 34.2 million Americans. Those who have kids make up 20% of the US household share, which is 24 million home residents. Single parent households comprise 11% of the overall share, equaling 12.9 million household residents.
Current housing market trends denote that 15% of the total household share are women, whereas 13% are men. In figures, that is 18.8 million women and 15.3 million men.
19. 24% of the New York population lives in apartments.
Nearly one-quarter or 4.6 million New York residents are settled in apartments. The number of people residing in home units is way higher, amounting to nearly 19 million, as shown by housing statistics by state.
Conversely, the smallest percentage of apartment residents is seen in West Virginia, Idaho, Wyoming, Montana, and New Mexico. Namely, only 5% of the population in West Virginia live in flats. Other states have a slightly higher percentage of apartment residents — 6%. The figures undoubtedly show that flats are more popular in metropolitan areas.
20. 6.7 million Californians reside in flats.
California housing market trends show that only 17% percent of the entire local population lives in flats. This means more than 6.7 million Californians dwell in condos or apartments. On the other hand, the number of house units tenants is more than 6 times higher, totaling 38.7 million people.
Housing Price Trends: To Rent or to Buy
Unfortunately, not everyone can buy a home, mainly due to financial reasons. The 2020 crises and volatile economy made things even worse for some prospective buyers and ruined their plans of purchasing their own homes. For the time being, renting is their only solution.
21. 65% of US counties have seen an increase in renting costs.
It’s not only real estate prices that have gone up. According to housing market stats, renting expenses jumped in over two-thirds of the 3,143 American counties by March 2020. On the other hand, 40% of counties faced a dip in buying prices. The top 10 counties in which it’s cheaper to rent are listed below, together with the buy vs rent ratio:
- Santa Barbara: 134% vs 36%
- New York: 110% vs 30%
- Monterey: 86% vs 34%
- San Mateo: 80% vs 34%
- Los Angeles: 80% vs 37%
- San Francisco: 77% vs 35%
- Napa: 67% vs 27%
- Gallatin: 57% vs 21%
- Marin: 69% vs 35%
- Santa Fe: 57% vs 23%
Conversely, home sales statistics list more favorable counties to buy a home:
- Clayton: 19% vs 35%
- Baltimore city 22% vs 36%
- Richmond: 18% vs 29%
- Vigo: 13% vs 24%
- Cumberland: 19% vs 29%
- Wayne: 16% vs 26%
- Madison: 13% vs 22%
- Delaware: 13% vs 22%
- Hampton city: 20% vs 29%
- Newport News city: 25% vs 33%
22. With a rent of $2,592 a month, San Francisco is among the priciest cities.
Even though housing prices statistics record a drop in rents or prices in some cities, others still impose immensely high renting expenses. Despite a 17.8% dip in rent since March 2020, San Francisco is still at the top with renters paying $2,592 a month.
In comparison with the same time last year, when the rent costs amounted to $3,254, the current fee is more approachable. But, with over two and a half grand per month, San Francisco is one of the priciest cities.
23. The renting price in NYC declined by 11.6%.
The United States housing statistics lists New York as the second-expensive city. Besides the decline of 11.6% since March, you will need an average of $1,790 to rent a 2-bedroom home unit. Other cities that have faced a decline include Seattle (9.9%), San Jose (9.5%), Boston (8.9%), Washington DC (8%), Oakland (7.9%), Arlington (7.2%), Jersey City (6.3%), and Fremont (6.3).
24. The national average rental price is $1,231.
At the national level, housing market trends disclose a drop of 0.1% in renting costs. Thus, the average rent for a 1-bedroom home is $1,231. A similar decline is noted in the 2-bedroom home unit rent. In October, it amounted to $1,489. As for YTD terms, the 1-bedroom average rose by 0.6%, while the 2-bedroom average climbed by 0.7%.
Real Estate Agents Stats and Facts
Some people may choose to search for a new home on their own, relying primarily on the internet and PC or mobile devices. But, pursuing a housing unit can turn into a burdensome and excruciating process. Luckily, real estate agents are here to save the day.
25. There are 1,396,575 NAR members.
Housing statistics count approximately 1.4 million members of the National Association of Realtors (NAR) as of June 2020. As realtors must obtain licenses and certifications, 65% of them possess the sales agent licenses. 22% have a broker license, while 15% own broker associate licenses.
26. A typical agent is a 55 years old white female.
Over two-thirds (64% to be precise) of real estate agents are female. This is a decrease from 67% in 2019. Typically, they have a college diploma and are 55 years old. 83% of them possess their own home, whereas 38% have an additional estate.
27. Realtors make $49,700 annually.
US real estate stats uncover that a median annual salary that real estate agents earn amounted to $49,700. This is nearly an $8,000 increase from the previous year when they made $41,800. However, those with an experience of 16 or more years earn significantly more — $86,500.
The average working experience of all agents and realtors is 9 years, while they have spent an average of 4 years at the current firm. Around 87% of these professionals work as independent contractors, while 5% are employed in real estate agencies or firms. The remaining 8% have some other employment status. Most of them have a 36-hour workweek.
28. 32% of realtors have obtained a bachelor’s degree.
Based on housing statistics, most United States realtors and agents have some formal higher education. Namely, one-third of them have a bachelor’s diploma, while 28% have some college education. 13% obtained a graduate degree and associate degree, respectively. Approximately 7% are high school graduates, and 6% have some graduate school diplomas.
29. 93% of realtors prefer communication via email.
Realtors find emails as the most convenient way of communicating with their clients. Similarly, 92% prefer texting, while 37% prefer instant messaging.
The US housing market statistics uncover that 76% of female and 73% of male realtors have social media accounts, which they use for professional purposes.
In fact, social media generates around 47% of their leads, as opposed to the MLS site that gains them around 32%. Around 29% of leads come from brokerage and listing aggregator web pages. 11% of realtors 49 years of age or younger are likely to write a blog.
30. 89% of sellers were helped by realtors or real estate agents.
Before it is sold, a home unit was on the market for an average of 3 weeks. But almost 90% of sellers needed the help of an expert to post, advertise, and eventually sell the home unit. The US housing data shows 30% of sellers found a real estate agent through their friends or family referrals. Another 27% of people engaged agents they have previously worked with. In fact, about 48% of sellers would hire the same agent or realtor again.
The Bottom Line
The beginning of the coronavirus pandemic has disturbed people’s typical activities. Lockdown, job losses, and economic volatility affected nearly all plans that people made at the turn of 2020.
Housing statistics show that the housing industry was severely impacted by the pandemic and its consequences, especially at its very start. Luckily, the market managed to recover successfully and is slowly regaining the prosperity it had in the previous years.
Whether you want to buy or sell a home unit, current trends are at your disposal to take advantage of them. The prospects to sell a home at an attractive price have never been better. An experienced and knowledgeable real estate agent or realtor is there to help you find a perfect house and make successful transactions.
People Also Ask
Though the housing industry saw an excellent start, the COVID-19 pandemic halted the buying and selling of home units in February and March.
However, it recovered in June with fantastic records and managed to keep the same progress. Low interest rates, intense competition, and high demands drove the increase in housing sales. In fact, the supply-and-demand ratio resulted in the highest average price of $350,000 in September, which is an increase of 11.1% from last year.
Americans’ favorite type of home is a detached single-family house. Although 80% of residents would like to live in this type of home, 70% reside in such a place. Besides, Americans prefer their yards fenced. 87% consider privacy somewhat important, whereas 45% deem it very important.
Though only 8% of Americans prefer condos and apartments, 17% live in a flat or condo. Regarding location, not all people would like to live in the city center. In fact, only 34% prefer to be in the center, while 53% favor more distant areas.
Last July, there were 139.68 housing units in America. This is a slight increase compared to about 138.45 million in 2018 and 136.57 in 2017. The rise of home units subsided over time due to several reasons. The primary one was the change in housing occupancy. Namely, the number of owned properties declined in favor of rented home units.
Younger generations seem to prefer renting to buying a home, which could be due to their financial situations. Due to high student debts, they are hesitant about sinking into more debts. Another reason for younger people having doubts about purchasing a home is the fact that they need time to settle down in one place, as they love moving around.
The pandemic did take its toll on the entire USA at the beginning of 2020. Massive job losses had severe consequences on all industries and economy segments. This affected the housing industry as well since buying and selling of real estate halted.
Fortunately, the tables have turned now. More residents started returning to work, which resulted in positive trends in the housing market. Considering this growth, as well as the financial and monetary support from the government, the market is highly unlikely to crash either in 2020 or in 2021.
The US government offers accommodation support for residents who have low incomes. That support is provided via the Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA).
The Census’s role here is to discover the overall population in a state and the number of people residing in various types of homes. With this type of info, as well as with housing statistics, the federal government can determine how much money it needs to assign to every state.