What’s Making Today’s Homebuyers Tick?

A key part of the American Dream, homeownership offers  a sense of belonging, stability and freedom—fostering a connection to community, with homeowners taking pride in their properties and neighborhoods.

In recent years, however, this connection has felt out of reach for many Americans across the board for a variety of reasons—from the impact of COVID-19 cutting us off from family and friends to an increase in work-from-home models limiting connection to colleagues. In fact, in 2023, the U.S. Surgeon General released a report on America’s “loneliness epidemic,” which revealed that approximately one in two adults experience loneliness caused by social disconnection. 

Despite this feeling of separation and the recent economic challenges impacting the housing industry, today’s consumers maintain a feeling of excitement and joy associated with owning a home and the potential for connection of joining a community, according to a new consumer study commissioned by global real estate leader Century 21 Real Estate.  

The brand’s goal was to explore what’s driving the decisions of today’s buyers. What are they thinking about as they embark on the journey of purchasing a home, and what are they looking for beyond the property itself?

The CENTURY 21 brand enlisted leading research company, Ipsos, to conduct a survey of Americans ages 18 – 64 who had either purchased a new primary residence in the past two years or were intending to buy in the next 12 months, to drill down into the state of mind of today’s homebuyers and what’s impacting their purchase decisions—including the ways they seek and prioritize community and connection throughout the journey. 

Titled “Connection, Community & Joy: How Recent/Intending Homebuyers Are Putting Community at the Center of the Home-Buying Process,” the study revealed that homebuyers are making the best of a challenging market to embrace homeownership and not only join a community but make an impact for the better. 

This is welcome news for communities that may be on the verge of growth as these areas may be more likely to thrive with new homeowners who want to participate in their communities and see them prosper. 

Prioritizing connection and community through the real estate process  

The CENTURY 21 brand-commissioned study revealed that community plays a key factor in homebuying as individuals and families alike prioritize social connectivity, cultural richness, economic and environmental stability—the key tenets of a community’s value—more so than ever before. 

While many Americans feel that it’s very important to have a connection to their local community, this connection matters more to recent homebuyers (67%) and intending homebuyers (68%) versus a nationally representative group of U.S. adults surveyed (41%)1. 

“A sense of belonging and having a place to call home is very important,” says Arica Rucker, broker/owner of CENTURY 21 Rucker Real Estate in Charlotte, North Carolina. “Everyone wants to feel like they belong to a community.”

With a vibrant community providing an environment where individuals and families can build relationships with neighbors, participate in community events and share common spaces, the study found that today’s buyers are expanding their concept of the “dream house” to include the notion of a “dream community.” In fact, 88% of recent/intending homebuyers are willing to compromise on elements of their dream home to be in a community that’s right for both themselves and their families. This is especially true for those with kids in the home—where the percentage among survey respondents stands at 92% versus 81% for those without children in the household.  

“Community means home,” says Stephen Votino, broker/CEO of CENTURY 21 Triangle Group in Raleigh, North Carolina. “The walls around them and the roof over their heads give security, but how they live is wrapped up in the community that surrounds them. The people, activities, locations…where we live, work and play bring us connection and a sense of belonging.”

Drilling down further, the data found that recent/intending homebuyers are excited to make an impact and participate in their communities in a variety of ways, including reported plans for civic participation and entrepreneurship. This will ultimately help shape these communities into a place where their family can thrive—something that resonated in particular with younger demographics. The study found that 94% of recent/intending millennials and 87% of recent/intending Gen Z buyers want to live in a community where they can make a difference.  

Diversity is another key factor, with recent/intending homebuyers considering themselves to be open-minded and inclusive. Ninety-two percent of those surveyed want to be part of a community that embraces diversity, and as our country prepares to elect its leadership, 90% of those surveyed don’t consider political affiliation to be a barrier to building community with those around them, with millennials aligning more strongly with this sentiment (94%) versus Gen Z (85%). 

Helping pave the way to the American dream of homeownership 

Despite recent uncertainty within the housing market and the need to adjust to a new era of real estate in today’s post commission-mandate landscape, recent buyers, across generations, continue to feel positive about the home-buying process—with millennials reporting higher levels of excitement (58% compared to 52% of recent Gen Z buyers and 56% of all recent homebuyers), happiness (60% compared to 52% of recent Gen Z buyers and 55% of all recent homebuyers) and hope (48% compared to 36% of recent Gen Z buyers and 44% of all recent homebuyers) around their move. 

However, feelings of anxiety (24%) and uncertainty (20%) continue to affect all recent homebuyers, with slightly lower rates for the younger generations—giving today’s real estate professionals a critical role in creating a positive experience for homebuyers by providing guidance to address concerns and ease uncertainties. 

Given these new findings, the industry is also recognizing the growing importance of agents as community stewards, a role that is critical when it comes to finding and making connections in the right community. Now more than ever, agents must demonstrate their knowledge of the wants, needs and desires of their buyers—and help keep the positive emotions high at every step along the way. 

Not only are buyers looking for an agent who can help them navigate the home-buying process from start to finish, but they’re also looking for a real estate professional who has a deep understanding of the communities in which they work so that they can confidently paint a picture of where the community is primed to go, with 92% of recent/intending buyers noting that it’s important that their agent has insight into how the community will grow and evolve in the future. 

While 65% of intending buyers rate getting involved in the local community after they move as “very important,” the percentage drops to 53% among recent homebuyers, perhaps signaling that new homeowners often face challenges when it comes to new community involvement. 

This presents a unique opportunity for agents to help their clients get to know their community better after moving into their new home. It also highlights the importance of agents being active in the communities they serve, which is something the CENTURY 21® brand as a whole is proud to see among the independent agents and brokers affiliated with the brand. 

“I participate in various community events throughout the city, and also serve on various nonprofits in Tennessee,” says Eva Angelina Romero, broker/owner of CENTURY 21 Capital Properties in Nashville, Tennessee. “I try [to] get involved and network in various groups serving our community.” 

With no shortage of ways to get involved in one’s community, the sky’s the limit for real estate professionals who are serious about strengthening their ties with the local community and establishing and maintaining a presence. 

“I am very involved in my church and am joining the board for our local library,” notes Christine S. Farley, an associate broker with Portsmouth, Rhode Island-based CENTURY 21 Topsail Realty, who also runs a Facebook group with over 10,000 people in it. 

While being connected to the community is important for real estate professionals who want to stay ahead of the competition by becoming the go-to source for everything their clients need before, during and after the transaction, strong community ties top the list as far as Gen Z
buyers’ expectations—nine in 10 Gen Z respondents feel it’s important for a real estate agent to have a connection to their local community. 

“Homeownership doesn’t end at the property line. When someone buys a home, they are becoming an invested member of their community,” states Mike Miedler, president and CEO of Century 21 Real Estate LLC. “This notion is what led us to dig deeper into what role that plays within the home-buying process. It is the real estate professional’s role to not just guide clients on the journey to finding that home that is right for their family and their circumstances, but to ensure that the agent is helping to deliver on the quality-of-life buyers are seeking beyond the house itself. That means helping facilitate those connections that are going to allow their family to thrive within their new community.” 

Hispanic Americans: the driving force shaping the industry’s future

In 2023, the National Association of Hispanic Real Estate Professionals (NAHREP) reported that the Hispanic homeownership rate had reached 49.5%2. With this demographic poised to serve as a leading driver of growth within the housing market, the CENTURY 21® brand study took a deeper dive into the role that community plays among Hispanic recent and intending homebuyers.   

Exploring the differences in community aspirations of recent/intending Hispanic homebuyers versus a nationally representative group of U.S. adults surveyed and across generations and family composition, the brand conducted a subset study focused on Hispanic respondents titled, “Pride, Prosperity and Participation: The Community-Focused American Dream for Hispanic Recent/Intending Homebuyers.” This subset study sheds light on the ways in which recent/intending Hispanic homebuyers uniquely uphold the American Dream. 

Hispanic and other underrepresented homebuyers often face myriad obstacles on the path to homeownership. While the research shows that many recent/intending Hispanic buyers look for a home in a community that offers economic opportunity and allows them to make a difference, for this group, community looks like a mutually supportive arrangement, where they can make a positive impact and receive help in return. 

When asked about the attributes they look for in a potential community, recent/intending Hispanic buyers prioritized hope for the future (92%), support (90%), acceptance (88%) and connection (88%)—underscoring the fact that the community ultimately matters more than the house itself. 

With the CENTURY 21 brand present in the Top 5 Hispanic growth states, as identified by NAHREP3, and nearly 10% of CENTURY 21 independent agents speaking Spanish, the global franchisor is perfectly positioned to show up as an unparalleled resource for Hispanic buyers—35% of whom point to guidance from their real estate agent as one of the ways they get to know the local community during the buying process. 

“The CENTURY 21 brand is the first choice that Hispanic consumers would consider when seeking the support of a real estate agent and, as such, we recognize the importance of having access to those insights that are driving their purchase decisions,” says Mike Miedler, president and CEO of Century 21 Real Estate LLC. “The agents affiliated with the CENTURY 21 brand know that these buyers are looking to homeownership as a badge of pride for their families and a path to generational wealth. It is up to those agents to ensure that they are helping to find the right home in the right community and will help set their clients up to thrive today and tomorrow.”

While attending a religious event (29%), walking around the neighborhood (50%) and social media research (42%) provide insight into a community, agents play a key role as community stewards for Hispanic homebuyers who are looking for a real estate professional who can help guide and support them through the home-buying process with a deep understanding of their cultural needs. 

To that end, recent/intending Hispanic homebuyers prioritize the following qualities when choosing a real estate professional to guide them through the process: Knows or is part of a local community (91%), can support through the process of homebuying (94%) and can give tips on grants or funding (93%). 

“I work a lot in the Hispanic community, [which] places a strong emphasis on family and community,” says Eva Angelina Romero, broker/owner of CENTURY 21 Capital Properties in Nashville, Tennessee. “They use collective action as a form of community and can organize to advocate for their rights and address issues affecting them—such as education and
healthcare.” 

Understanding the unique needs of Hispanic buyers is mission critical for real estate professionals looking to lead the way as the Hispanic homeownership market continues to evolve.

1 Study Source: 2024 Homebuyer Insights Study. The survey results are based on a starting sample of a nationally representative group of n=6,020 U.S. adults ages 18-64. After screening, a total of n=1,041 recent (purchased a new primary residence in the past two years) or intending (intend to purchase a primary residence in the next twelve months) homebuyers completed the survey (n=500 and n=541, respectively), with samples among Hispanic (n=270), Gen Z (n=279), and Millennial (n=390) participants. The study was conducted by Ipsos, a leading global market research organization, from July 17th, 2024 to July 24th, 2024.

2 2023 NAHREP State of Hispanic Homeownership Report

3 Study Source: 2023 Ad Tracking Study (Hispanic Audience). The survey results are based on 313 online interviews with a national random sample of adults (ages 18+) who are equal decision makers in real estate transactions and active in the real estate market (bought or sold a home within the past two years or, plan to purchase or sell a home within the next two years) from Spanish, Hispanic, or Latino background/origin. The study was conducted by Kantar Group Limited, a leading global market research organization, from November 17 – December 1, 2023.

For a look at the full research report, please visit www.century21.com/real-estate-blog/.