A new study conducted by Trulia, one of the leading online real estate portals, has found that more number of Americans prefer a newly built home while buying a house over an existing home but aren't willing to pay for it.
The report found that about 41 percent of the total respondents would prefer buying a fresh, newly-built home while 21 percent would go for an existing home. Thirty eight percent didn't have a preference.
However, the experts found that of the 41 percent, less than half of them were willing to pay for a new home, which is usually priced 20 percent higher than existing homes. Fifty nine percent of them also specified their liking for modern appliances such as kitchen islands, larger closets and open floor plans.
Buyers preferred new homes over existing homes because fresh structures allow for customization and modern appliances. However, cost and availability were major barriers for the buyers.
"Most people who say they strongly prefer a new home aren't willing to pay the premium, and many regions of the country have little single-family construction. Still, as the housing market recovers, new homes will be a growing share of the national market," Jed Kolko, Trulia's chief economist said in the report.
Other factors that influence buyer's preference for newly built homes were low maintenance costs, modern construction standards and newly developed neighborhoods.
Another interesting fact was found in the study. The younger age group (from 18-34) were the ones who didn't mind paying 20 percent more for a new home with sparkling appliances (about 21 percent of the total 41). The lowest percentage of people agreeing to pay extra was in the oldest demographic (people aged above 65) with just 11 percent.
In a separate report by Fannie Mae, it was found that younger people thought buying/owning a home was a better option than renting one but were uncertain about securing a mortgage.
"..a large majority of young renters have remained pessimistic over the last few years about their ability to get a mortgage; in contrast, younger owners have grown more optimistic. Demographic differences between younger renters and younger owners may explain part of the gap in attitudes," Sarah Shahdad, strategic planning analyst at Fannie Mae said in the report.
"Our results suggest that many young renters may continue to rent longer due to insufficient financial capability and/or preparation, despite the majority's preference for owning," she added.
