Data from survey pinpoints a potential new housing demand of 2.1 million households in the US generated as a direct result of COVID-19
Addressing what buyers want will provide a competitive advantage for builders and developers going forward
SAN DIEGO, CALIF. (June 11, 2020) – In response to the uncertainty COVID-19 brought to the nation’s economy, including the housing market, newly uncovered insights from the first-ever America at Home Study unveils a paradigm shift in how Americans view and value their homes. With the concept of home being more important than ever before, the hard data strikes down market speculation as thousands of surveyed consumers prove homebuying is not only top-of-mind, but more in demand than the industry – and its analysts – had anticipated.
Developed by three women leaders in the homebuilding industry, the data shows future design trends, what people are willing to spend, and the changes they’re making now. Spearheaded by marketing expert Teri Slavik-Tsuyuki, market and consumer strategist Belinda Sward, and architect Nancy Keenan, the results also shed light on how Americans feel about and live in their homes, offering hope and a new path forward for the industry at large.
The Crucial Need for Hard Data
As news of COVID-19 spread, research and consulting firms began speculating what impacts the virus would have on society and the economy. Until the America at Home Study, no organization had gathered hard data about one of the most important factors: how Americans will view their homes after being quarantined in them while attempting to work, school their children, and find a new normal.
“I grew frustrated that nobody was asking or talking about what this meant for Americans,” said Slavik- Tsuyuki, principal at tst ink LLC. “The majority of the nation was sheltering in place, and the information shared by analysts was largely opinion. No one was asking consumers about their stark homebound realities and what it would mean for home and community design in the future.”
Survey Brings American Residents Front and Center
The America at Home Study is a nationally representative survey of 3,001 US adults between the ages of 25 – 74 with an annual household income of $50,000 or more. Conducted online from April 23 – 30 and analyzed in early May, it is the first wide-scale effort to put American residents and their input at the heart of the conversation in a quantifiable matter.
New York-based Gazelle Global Research programmed and fielded the survey, ensuring a credible representative sample size. The non-biased survey was not paid for by any sponsor or brand and was created to deliver real statistics.
Unexpected Results Emerge
Finally including Americans in this life- and industry-altering conversation, the America at Home Study ultimately revealed significant untapped demand within the new home market.
Based on responses indicating COVID-19 has impacted their plans to move sooner, a potential new housing demand of 2.1 million households has been identified among homeowners in the U.S. across all age groups, led by millennials. While 42% of respondents plan to stay in their homes longer, more than half said they have no change in plans, meaning if they were planning to move those plans are still intact.
For renters, nearly half of respondents said COVID-19 has made them more inclined to buy a home. This equates to a potential housing demand of approximately 7.4 million households switching from being renters to owners. For this group, affordability is seen as a necessity in order to make the change.
Between both homeowners and renters, 72% desire a single-family detached home over any type of multi-family housing type.
“The America at Home Study indicates both an increase in new home demand and new deciding factors for home shoppers,” said Sward, founder and chief strategist at Strategic Solutions Alliance. “By putting this data to work, builders, developers, architects and more will gain a competitive advantage by designing and building what today’s residents want.”
The New Demands of Home Design
When asked what “home” meant as a result of COVID-19, respondents overwhelmingly identified three top terms: a safe place (91%); comfort (85%); and family (84%).
All generations of respondents also identified three top features currently missing from their home that they would be willing to pay for: germ-resistant countertops and flooring (55%); greater technology and energy efficiency (55%); and more storage for food and water (51%).
Furthermore, nearly all survey participants have already made one or more changes in their home in light of the pandemic, including disinfecting more regularly and using rooms in their home for combined purposes.
“The results of the America at Home Study are clear: People don’t want to go back to ‘business as usual’ or ‘normal.’ The pandemic has brought forth a deep desire for change,” said Keenan, CEO of DAHLIN Architecture and Planning, a firm widely recognized for sustainable design and diverse urban and suburban development. “As industry leaders, we have a duty to take these responses and put them into practice, starting by focusing on sustainability related to hygiene, health and safety.”
Learning from the Past and Building for the Future
The motivation to purchase or rent a home has drastically changed due to the coronavirus pandemic. When major shifts occur in society, people live differently, as evidenced by the 1918 pandemic, during which the importance of cleanliness became a lasting imprint on the fabric of American life. The America at Home Study results suggest the same effect will be felt in 2020 and beyond as US citizens overcome the severe disruption of coronavirus.
“Think back to WWII when the automobile industry pulled the US economy out of peril. Now, the evolution of the housing industry has the strong potential of being a major factor in pulling the economy back from the devastation of COVID-19,” said Slavik-Tsuyuki. “Similar to the response of 9/11, where we witnessed a visible commitment to safety, COVID-19 has become a force of transformation calling upon the housing and development industry to respond in parallel.”
This is not the first time America has faced great uncertainty. What matters now, given the hard data, is that the housing industry takes actionable steps to forge ahead, providing cleaner and safer housing for all.
“Leadership is recognizing problems, identifying the facts behind them, posing solutions, and bringing people together to realize them,” said Keenan. “The America at Home Study shows an extraordinary renaissance happening during stay-at-home measures. We, as decision makers in the housing industry, should assemble and act in honor of what renters and homeowners desire next.”
For more information about the America at Home Study, visit americaathomestudy.com.
About America at Home Study
The America at Home Study was hosted online April 23 – 30, 2020 with a nationally representative sample of 3,001 consumers 25 – 74 years of age with household incomes of $50,000+. The Study was spearheaded by marketing expert Teri Slavik-Tsuyuki of tst ink, consumer strategist Belinda Sward of Strategic Solutions Alliance, and architect Nancy Keenan, President and CEO of DAHLIN Group. The results reveal Americans’ desire for home purchases, how they feel about and live in their homes, and what changes they’d like as a direct result of sheltering in place. americaathomestudy.com