Thursday
September 18, 2014

Who Is the Typical New-Home Buyer?

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Who Is the Typical New-Home Buyer?

Data from the National Association of Home Builders and Metrostudy collected for new-home closings over the past year offers up a closer look at the average new-home buyer and the prices of homes purchased by region.

What's New With New Homes

Northeast

Of a total 222,177 closings recorded year-to-date in 2014, 7,977 were new-home sales in the Northeast. The average Northeast buyer paid a median of $343,777.78 ($164.40 per square foot) for a new home. About 64 percent of new-home buyers in the Northeast are married and have one or two children, with an average household age of 46. The leading builder in the Northeast during the first two quarters is NVR.

West

Of a total of 569,900 closings year-to-date this year, 39,693 were new-home closings. The median closing price for a new home is $316,007.69 ($176.08 per square foot). About 63 percent of new-home buyers in the West are married, averaging about two children, and the average household age is 42.6. The leading builder in the West during the first two quarters is DR Horton, which also is the year-to-date leading builder by closings nationwide.

Midwest

Of a total of 421,745 closings this year, 15,134 have been new-home closings. The median closing price in the Midwest is the lowest of all four U.S. regions: $272,190.91 for a new home ($144.09 per square foot). Sixty-seven percent of new-home buyers are married, have an average of two children, and the average household age is 42.2. The year-to-date leading builder for the region is Pulte-Del Webb-Centex.

South

Of a total of 963,189 closings this year, 87,833 have been new-home closings. The median closing price for a new home is $275,035.29 ($143.47 per square foot). Fifty-six percent of new-home buyers are married (the lowest marriage rate of new-home buyers in the country), and average new-home households have one or two children. New-home buyers are youngest in the South, with the average household age at 40.2. The leading builder in the region this year is D.R. Horton.

Source: “Running the Region: Who Is the Average Home Buyer in Each Corner of the U.S.?” Builder Online (July 23, 2014)