Today's affluent homeowners are willing to travel farther to work to get the larger, more elaborate houses they want when they move up from their current ones, according to yet another survey released at the convention. This one is based on 1,776 homeowners who have purchased houses insured by the Home Owners Warranty (HOW) program since 1980.
Dream Seems Attainable
These affluent baby-boomers plan to buy a house with about 2,360 square feet--about 30% larger than their current homes--with a median price of $125,000. About 16% plan to spend $200,000 or more for that move-up dream home. With a median household income of $53,412--20% of the respondents made $75,000 or more--the dream of moving up seems attainable.
Alan Greenspan, chairman of the Federal Reserve Board, cited and praised the stability of the past six years in the economy in general and the housing industry in particular in a speech to the association's board of directors on the final day of the convention.
Greenspan said the past six years have seen single-family starts at or slightly above the 1 million per year mark, consistent with demographic trends, such as household formations, which are averaging 1.5 million a year.