SEATTLE, March 1, 2016 /PRNewswire/ -- Millennials
and people of color are most likely to associate homeownership with
the American Dream, according to the latest Zillow® Housing
Confidence Index (ZHCI)i.
Among people 18-34 years old, 65 percent said homeownership and
the American Dream go hand-in-hand. That's more than any other
generation. Similar to millennials, 64 percent of respondents age
65 and older said homeownership is necessary for the good life and
the American Dream.
People-of-color also were more likely than white people to
consider homeownership integral to the American Dream. Of Hispanic
respondents surveyed, 70 percent agreed that owning their own home
is necessary to live the American Dream, followed by 64 percent of
Asian respondents and 63 percent of black respondents. Almost 60
percent of white respondents agreed.
The survey results come at a time when rising rents and stagnant
incomes are making it tough for many Americans to buy homes.
Millennials are renting longer than past generations as they put
off major life decisions, but Zillow's survey shows millennials
value homeownership more than their parents and grandparents.
The rising confidence of millennials and Hispanics, in
particular, are helping to drive rising overall confidence in the
housing market. Confidence in the housing market overall has
increased from six months ago, to a headline index of 66.9. An
index number over 50 indicates general confidence.
With their faith in the value of homeownership and their
optimism in the market, these groups will play a key role in
ensuring the stability of the market as demographics change. For
example, millennial households have more confidence in the housing
market compared to the general population, and expect home values
to appreciate 5 percent annually over the next 10 years.
"The American Dream is really about opportunity, which means a
lot of things to a lot of different people. For young Americans and
Americans of color, the opportunity to own a home is a big part of
that dream," said Zillow Chief Economist Dr. Svenja Gudell. "It's often assumed that
homeownership holds little interest for these groups, or that they
may feel the challenges in achieving homeownership aren't worth the
benefits. But that's simply not true, and their optimism and
determination today will be hugely important to the stability and
growth of the housing market tomorrow. These Americans represent
the next generation of U.S. homeowners, and for homeownership to
eventually become a reality, it has to start as a dream."
The semi-annual U.S. Housing Confidence Survey (HCS), sponsored
by Zillow and conducted by Pulsenomics LLC, asks 10,000 renters and
homeowners about the condition of their local real estate market,
their expectations for home value growth and affordability in the
future, and their views on homeownership.
"Amidst turbulent financial markets and unsettling election year
politics, confidence in the U.S. housing market has proven
resilient in recent months, even as investor confidence, business
confidence, and consumer economic sentiment have wavered," said
Terry Loebs, Founder of Pulsenomics.
"Housing confidence has increased in every metro area surveyed over
the past two years and fueled the market recovery. This is
reassuring in the face of economic and financial market headwinds."
Metropolitan
Area
|
Hispanic
Respondents
Who Agreeii
|
Asian
Respondents
Who Agree
|
Black
Respondents
Who Agree
|
White
Respondents
Who Agree
|
United
States
|
69.7%
|
63.7%
|
62.9%
|
57.6%
|
New York/Northern New
Jersey
|
74.3%
|
60.3%
|
59.3%
|
57.4%
|
Los Angeles-Long
Beach-Anaheim, CA
|
75.0%
|
67.8%
|
67.7%
|
64.2%
|
Chicago,
IL
|
76.4%
|
82.9%
|
63.4%
|
61.2%
|
Dallas-Fort Worth,
TX
|
61.0%
|
66.7%
|
72.2%
|
62.2%
|
Philadelphia,
PA
|
66.7%
|
71.9%
|
56.3%
|
54.9%
|
Washington,
DC
|
61.9%
|
60.3%
|
60.5%
|
57.0%
|
Miami-Fort
Lauderdale, FL
|
75.4%
|
66.7%
|
62.2%
|
64.3%
|
Atlanta,
GA
|
66.7%
|
78.8%
|
65.6%
|
52.0%
|
Boston, MA
|
74.4%
|
68.9%
|
67.7%
|
61.8%
|
San Francisco,
CA
|
66.3%
|
61.3%
|
72.5%
|
47.8%
|
Detroit,
MI
|
87.5%
|
62.5%
|
62.0%
|
62.8%
|
Phoenix,
AZ
|
69.9%
|
51.5%
|
72.7%
|
58.6%
|
Seattle,
WA
|
70.3%
|
59.3%
|
52.0%
|
54.6%
|
Minneapolis-St Paul,
MN
|
9.1%
|
42.9%
|
77.4%
|
53.9%
|
San Diego,
CA
|
57.6%
|
54.8%
|
58.3%
|
57.2%
|
St. Louis,
MO
|
45.5%
|
70.6%
|
57.6%
|
55.7%
|
Tampa, FL
|
69.4%
|
50.0%
|
60.0%
|
59.1%
|
Denver, CO
|
72.6%
|
65.5%
|
53.8%
|
53.4%
|
Las Vegas,
NV
|
79.0%
|
61.9%
|
65.3%
|
59.5%
|
San Jose,
CA
|
69.9%
|
69.6%
|
58.3%
|
57.7%
|
Metropolitan
Area
|
18-34 Year
Olds Who
Agree
|
35-49 Year
Olds Who
Agree
|
50-64 Year
Olds Who
Agree
|
65+ Year
Olds Who
Agree
|
United
States
|
65.3%
|
58.4%
|
56.9%
|
63.9%
|
New York/Northern New
Jersey
|
72.5%
|
71.0%
|
44.8%
|
54.7%
|
Los Angeles-Long
Beach-Anaheim, CA
|
86.9%
|
57.7%
|
62.0%
|
64.4%
|
Chicago,
IL
|
69.2%
|
62.8%
|
64.3%
|
66.7%
|
Dallas-Fort Worth,
TX
|
71.4%
|
56.6%
|
59.7%
|
67.8%
|
Philadelphia,
PA
|
44.0%
|
64.6%
|
56.3%
|
69.4%
|
Washington,
DC
|
62.9%
|
54.8%
|
55.0%
|
65.2%
|
Miami-Fort
Lauderdale, FL
|
73.0%
|
66.9%
|
68.0%
|
65.3%
|
Atlanta,
GA
|
59.6%
|
59.0%
|
57.4%
|
62.9%
|
Boston, MA
|
74.2%
|
60.8%
|
54.5%
|
63.9%
|
San Francisco,
CA
|
64.5%
|
53.7%
|
50.0%
|
60.0%
|
Detroit,
MI
|
71.2%
|
58.7%
|
58.1%
|
67.0%
|
Phoenix,
AZ
|
78.7%
|
37.0%
|
62.2%
|
63.4%
|
Seattle,
WA
|
56.0%
|
57.4%
|
52.8%
|
61.4%
|
Minneapolis-St Paul,
MN
|
55.9%
|
43.7%
|
54.5%
|
59.7%
|
San Diego,
CA
|
54.1%
|
58.1%
|
53.8%
|
67.6%
|
St. Louis,
MO
|
60.1%
|
50.0%
|
53.6%
|
61.4%
|
Tampa, FL
|
55.3%
|
64.7%
|
57.2%
|
65.4%
|
Denver, CO
|
57.8%
|
55.1%
|
56.8%
|
64.2%
|
Las Vegas,
NV
|
70.4%
|
65.1%
|
60.0%
|
63.5%
|
San Jose,
CA
|
66.2%
|
70.1%
|
58.3%
|
65.3%
|
About Zillow
Zillow® is the leading real estate and
rental marketplace dedicated to empowering consumers with data,
inspiration and knowledge around the place they call home, and
connecting them with the best local professionals who can help. In
addition, Zillow operates an industry-leading economics and
analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of
economists and data analysts produce extensive housing data and
research covering more than 450 markets at Zillow Real Estate
Research. Zillow also sponsors the quarterly Zillow Home Price
Expectations Survey, which asks more than 100 leading economists,
real estate experts and investment and market strategists to
predict the path of the Zillow Home Value Index over the next five
years. Zillow also sponsors the bi-annual Zillow Housing Confidence
Index (ZHCI) which measures consumer confidence in local housing
markets, both currently and over time. Launched in 2006, Zillow is
owned and operated by Zillow Group (NASDAQ: Z and ZG), and
headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
About Pulsenomics:
Pulsenomics LLC is an independent
research and consulting firm that specializes in data analytics,
new product and index development for institutional clients in the
financial and real estate arenas. Pulsenomics also designs and
manages expert surveys and consumer polls to identify trends and
expectations that are relevant to effective business management and
monitoring economic health. Pulsenomics LLC is the author of The
Home Price Expectations Survey™, The U.S. Housing Confidence
Survey, and The U.S. Housing Confidence Index. Pulsenomics®, The
Housing Confidence Index™, and The Housing Confidence Survey™ are
trademarks of Pulsenomics LLC.
i The ZHCI is computed by Pulsenomics from data
compiled by the Zillow-sponsored U.S. Housing Confidence Survey
(HCS), consisting of more than 10,000 completed household
interviews with adult landline and cellphone users nationwide. ZHCI
is a diffusion index measured on a 100-point scale, with readings
above 50 indicating a surplus of confidence in the housing market.
This edition of the ZHCI is derived from data collected in the
January 2016 edition of the HCS,
conducted between January 6 and January 14,
2016. At a 95% confidence interval, the theoretical margin
of sampling error for an aggregated, household-weighted sample of
10,000 (comprised of 20 metro-level probability samples of 500
each) is +/- 1.2%, and larger for sub-groups (e.g., +/- 1.5% for
all homeowner households, and +/- 2.0% for all renter households).
More than 350,000 consumer responses pertaining to the real estate
market where each survey respondent lives are recorded by
Pulsenomics to produce each edition of the ZHCI. To view or
download all 252 index values that comprise each edition of the
ZHCI data set, or to learn more about the ZHCI calculation
methodology, please visit Zillow.com/research or
pulsenomics.com.
ii The sample sizes for minority subgroups are
proportional to the composition of each MSA's household
population.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/millennials-and-non-white-americans-most-likely-to-associate-homeownership-with-the-american-dream-300228249.html
SOURCE Zillow