Affordability, Location and Lifestyle Remain Key Drivers for Homebuyers, But Most Fear a Middle-Class Pricing Squeeze, New WSFS Mortgage Regional Study Finds
The WSFS Mortgage Regional Study reveals that 59% of residents in the Greater Philadelphia and Delaware area find it affordable, with over half considering Philadelphia for future home purchases. The study highlights a significant preference for suburban living, especially among younger generations. However, concerns arise from dwindling inventory, with 69% believing the middle class is being priced out of the market. Confidence in affording a home has decreased by 10% from the previous year, despite a belief in job market improvement. The study surveyed 782 participants, offering insights into shifting residential trends influenced by the pandemic.
- 59% of residents in the Greater Philadelphia and Delaware region find housing affordable.
- Over half of survey respondents consider Philadelphia for their next home purchase.
- Increased interest in suburban areas among younger generations, especially Gen Z and young Millennials.
- 64% believe the job market will improve in 2021, indicating positive economic outlook.
- Confidence in affording a new home decreased by 10% compared to 2020.
- 69% of respondents feel the middle class is being priced out of the market due to inventory issues.
Future uncertainty about their work, home and social environments shaping behaviors.
WILMINGTON, Del., March 03, 2021 (GLOBE NEWSWIRE) -- As the COVID-19 pandemic continues and people grapple with uncertain futures about their work, home and social environments, nearly six in 10 (
The study, a regional tracking survey of Generation X (ages 39-55), older Millennials (ages 30-38), young Millennials (25-29) and Generation Z (18-24), examines the behavioral preferences of homeowners and others who plan to buy a home within the region in 2021.
Two-Way Migration
While respondents are interested in purchasing a home in Philadelphia, especially among Gen Z (
Current Delaware (
Across the region, the top reasons cited for wanting to buy a new home are better quality of life; more affordable; family nearby; and prefer more outdoor space.
Inventory and Cash Concerns
Despite the prevailing feeling that the region is affordable, the shrinking inventory in some areas is cause for concern among all respondents, as nearly seven in 10 (
Overall, confidence in being able to afford to buy a new home in 2021 is down
“While we continue to see people look for new homes with more space or in desirable areas as interest rates remain low, there is also a crunch on inventory in the suburbs that is driving prices up,” says Jeffrey M. Ruben, President of WSFS Mortgage. “Some homebuyers, especially the middle class, are starting to feel squeezed out of some markets and are looking at Philadelphia as an option, especially among younger generations, while Delaware remains a strong choice due to affordability.”
Ruben adds, “We’re also seeing an influx of New York City residents moving to the area, with the metro Philadelphia market the leading destination due to lower homeownership costs, according to national data. This includes renters too, who may not know the area well enough to buy yet but are interested in staying here long term.”
Uncertain Expectations
Preparation is at the forefront of homebuyers’ minds, as
“The rate and buying environment sparked an increased interest in vacation homes and investment properties during the pandemic, for those who can afford it,” adds Ruben. “COVID-19 has changed the dynamic of extended family and multi-family vacations and destination travel, at least in the interim, and has shifted homeowners’ thinking about owning their own getaway properties, renovating their current homes for more frequent ‘stay-cations’ or investing in rental properties that provide additional, steady streams of income.”
Survey Methodology
The study was conducted by research company The Melior Group. The sample includes 782 respondents who reside in the five-county Philadelphia market (Philadelphia, Bucks, Chester, Delaware, and Montgomery), two New Jersey counties (Burlington and Camden), and all three Delaware counties (Kent, Sussex, and New Castle). All respondents were between the ages of 18 and 55. The first wave of the online survey was conducted from late January through early February 2021, with a margin of error of +/- 3.5 percent.
About The Melior Group
The Melior Group is a strategic consultancy with extensive industry experience and deep roots in marketing research. Melior provides insights that transform questions into answers, by delivering rich and robust results that directly inform strategic decision-making.
Melior was founded in 1982 to bring the disciplines of marketing research to service industries. Today, Melior is one of the region’s leading research-based consulting firms, serving organizations in the healthcare, government, leisure, tourism, financial services/ insurance, and education sectors.
About WSFS Financial Corporation
WSFS Financial Corporation is a multi-billion-dollar financial services company. Its primary subsidiary, WSFS Bank, is the oldest and largest locally managed bank and trust company headquartered in Delaware and the Greater Philadelphia region. As of December 31, 2020, WSFS Financial Corporation had
Media Contact: Eric Springer |
(215) 864-1778 |
espringer@wsfsbank.com |
FAQ
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