Identifying the drivers behind housing preferences of first‐time owners

Abstract

Purpose

The purpose of this paper is to provide a rare insight into the motivation behind first‐time buyers when looking to purchase their first home. The factors driving demand preferences for detached housing are constantly changing and difficult to measure, and often deemed to be a complex bundle of attributes.

Design/methodology/approach

The research in this paper is based on interviews with purchasers at a series of locations across Melbourne, Australia, who were actively seeking to purchase a home for the first time. The data were analysed using factor analysis to identify the core decision criteria in a new house that were most sought after.

Findings

The findings in this paper confirmed that “financial” issues accounted for approximately 30 percent of the actual decision by first‐time buyers to purchase housing, where decisions relating to the timing and choice of housing are dependent on “site‐specific” factors.

Research limitations/implications

The research in this paper is aimed specifically at first time buyers only and the influencing factors behind their purchasing decisions.

Practical implications

The paper shows that, if consideration is given to the characteristics that first‐time owners are looking for, providers of new housing would be better equipped to meet this demand and maximise construction efficiency.

Originality/value

In the paper the emphasis was placed on identifying and analysing the decision criteria behind first‐time buyers, which provided an invaluable insight into their concept of a suitable residence. Rather than analysing sales transactions after they have been completed, this research considers aspects of new houses that first‐time owners are actively searching for, prior to making their purchase.

Citation

Reed, R. and Mills, A. (2007), "Identifying the drivers behind housing preferences of first‐time owners", Property Management, Vol. 25 No. 3, pp. 225-241. https://doi.org/10.1108/02637470710753611