What Home Buyers Really Want: Ethnic Preferences (Part II)

Findings from the latest NAHB study on housing preferences, What Home Buyers Really Want: Ethnic Preferences, show there are both similarities and differences in what home buyers of different racial/ethnic backgrounds most want to have in their homes.

Based on an extensive list of more than 120 home and community features that buyers rated as essential, desirable, indifferent, or ‘do not want’, the table below shows the top 10 most wanted features for White, African-American, Hispanic, and Asian buyers.

Highlighted in yellow are the four features that are common to all four lists, i.e., they are really wanted by buyers of all racial/ethnic backgrounds:

  • A laundry room – the single-most wanted feature for all groups, except Asians who rank it 5th most wanted.
  • Energy-star rated appliances
  • Energy-star rating for the whole home
  • Exterior lighting

Highlighted in green are three features that are relatively more important to minority buyers than to White buyers, since they appear on the top 10 list for the minority groups but not for White buyers:

  • Living room
  • Dining room
  • Patio

Finally, highlighted in blue, are the two features that make it into White buyers’ top 10 most wanted list, but are ranked lower by the three minority groups:

  • Garage storage
  • Insulation higher than required by code

Fig1

When building homes, it is as critical to understand which features home buyers really want, as it is to know which ones they do not want and will probably not pay for.  The table below shows the 10 most ‘unwanted’ features (out of the 120+ home and community features listed) for each of the racial/ethnic groups analyzed in the study.

Interestingly, there are quite a few similarities in what home buyers reject across the different groups: 7 of the 10 most unwanted features are common across the four rejection lists (highlighted in yellow):

  • An elevator – the single-most unwanted feature across all four groups
  • Golf course community – second most unwanted feature across the board
  • High density community
  • Only a shower stall in the master bath (no tub)
  • Gated community (with a monthly fee of $100 to $200)
  • Wine cooler
  • Wet bar

Other features on this table, such as laminate countertops in the kitchen and a two-story family room, are among the 10 most unwanted features of three out of the four racial/ethnic groups analyzed.

Fig2

The next post on this series based on the study What Home Buyers Really Want: Ethnic Preferences will cover the specific kitchen, bathroom, and technology features most wanted by buyers of different racial/ethnic backgrounds.



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