source: NAR 2009 Investment and Vacation Home Buyers Survey

  • In 2008, 70 percent of home buyers indicated that they purchased a

    home to use as their primary residence, an increase from 67 percent in

    2007 and up significantly from 60 percent in 2005.

  • Most often, buyers purchase a primary residence based on job

    relocation needs, formation of a new household or changes in family

    circumstances necessitating a larger or smaller home or a home in a

    different location. These factors are present - perhaps to a larger or

    smaller degree - whether the economy is expanding or contracting.

  • For the remaining 30 percent of home buyers, the motivation to

    purchase an investment property or vacation home is influenced by a

    variety of factors.

  • In an environment of economic uncertainty, discretionary purchases

    such as vacation homes can be more easily delayed than the purchase of

    a primary residence as evident from the decline in the share of

    vacation home purchases to 9 percent in 2008 from 12 percent in 2007.