A large number of homeowners are willing to downsize - sell their home - and shift to a smaller place or rent if a sudden financial crisis takes over, according to a new survey conducted by Trulia Inc., the second largest online real estate firm of the country.
The study, conducted from late March to early April this year, asked 2,048 Americans what they would do if they suddenly faced a financial crisis and were forced to cut down on housing. The respondents were given several options and were asked to choose one that they most agreed with.
Below are the results of what the survey found:
- Move to a smaller home/apartment: 38%
- Rent out part of my home to a roommate/housemate: 19%
- Move to a more affordable neighborhood in the same city, metro area, or region: 19%
- Move to a more affordable city, metro area, or region: 16%
- Move to my parents' home: 14%
- Move into my children's (or other relative's) home: 8%
- Rent out part of my home to vacationers/visitors: 6%
- Live in my car, office, or another place that's not intended as housing: 5%
- Move into a non-relative's house: 4%
- I would stay in my current home but stop paying the mortgage: 4%
The survey also found that millennials (people aged between 18-34 years) were more willing to move in with a friend or rent out their place to a roommate. But surprisingly, the older adults and young adults are on the same level when it came down to downsizing to reduce housing costs.
"Downsizing, in fact, was the top option chosen by every demographic group, beating out all other actions for every age group, income group, and both home owners and renters," Jed Kolko, chief economist at Trulia, said in a statement.
"But other cost-cutting actions were much more appealing to some groups than others - with age differences being particularly important," he explained, adding that the middle-aged group is relatively hesitant about moving because "they're more likely to have jobs, kids at home, or both - and are therefore more tied to a school district or local labor market."
Another recent survey showed that a majority of prospective home owners don't know how much their mortgage would cost them and are overwhelmed by the whole mortgage application process.
The results of the survey are in line with a previous CNN Money poll that showed a significant change in the "Great American Dream" of buying a home. A large number of people are opting to rent rather than to buy as the economy recovers slowly.
