by Dan Krell © 2010
The average number of lifetime home purchases by a home buyer.
Recently, a home buyer told me that it will take him time to find his “perfect” home. You see, he is looking for the perfect home because, as he put it: “I only have one more move left in me…” Although no one has ever calculated the number of homes an average home buyer purchases over their lifetime, someone once decided that people typically purchase a home every five to seven years. Keeping this rule in mind, he has at least two moves left.
Interestingly, with all the life planning people maintain for their finances, career, and estate, most people do not say things such as, “I will own four homes in my life…” For many, home buying and selling tend to revolve around life events and personal preferences that change during a person’s lifetime. Of course some people contently live in one home for their entire lives, and some never become a home owner.
If the National Association of Realtors® data regarding first time homebuyers is correct, then it very well may be that the average person may have three home purchases during their lifespan, notwithstanding life or financial crises or job relocation. According to the National Association of Realtors® Home Buyer’s Home Preferences (published by NAR, 2007), most people tend to move within a fifteen mile radius from their previous home; a majority of these moves are within five miles. These three moves may actually parallel the adult stages of Erik Erikson’s theory of human development.
The National Association of Realtors® Profile of Home Buyers and Sellers (published by the NAR, 2008 and 2009) states that a majority of first time home buyers fall into the 25 to 34 year old range with a median age of 30 years old. This is a time period that coincides with Erikson’s Intimacy vs. Isolation stage (ages 20 to 34) when people are forming commitments; people are beginning in their chosen careers and formulating family plans.
A person’s second home is purchased for various reasons. However, the National Association of Realtors® Home Buyer’s Home Preferences (NAR, 2007) states that most home buyers prefer newer homes; and of those home buyers, the greatest majority desire a newly built home. This time period may coincide with Erikson’s stage of Generativity vs. Stagnation (ages 35 to 65); when a person focuses on their societal contributions and their growth in public prominence.
Erikson’s final stage of Ego Integrity vs. Despair may coincide with a person’s third home purchase because it is a time when people begin to define their life and accomplishments. The third home purchase may be the “reward” for working many years; often focusing on amenities and luxuries. Even though many downsize during this stage, the home tends to be focused on making them comfortable; not only having home features that are a luxury to them but also convenient to local services.
So the buyer proclaiming having only “one more move” in him, may in due course decide he was wrong. Although he may be anticipating how the buying and selling process relates to his life, he is certainly looking for a home he will not outgrow. However, it may be that in seven to ten years I may again hear him proclaim, “I have only one more move left in me.”
Comments are welcome. This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of October 25, 2010. Using this article without permission is a violation of copyright laws. Copyright © 2010 Dan Krell.
Such an interesting article.
I agree with Richey, this is quite the interesting article.