The Affluent Market for Home Acquisitions, New Construction, and Remodeling: Primary Residences and Vacation Homes

Data in this special report was drawn from the Spring 2007 Survey of Affluent Americans, the eleventh in a continuing series of twice-yearly studies of the most affluent 10% of U.S. households (a total of 11.2 million households with an average $3.1 million net worth).

These surveys measure and track how the affluent assess current business conditions and their 12-month outlook for the economy, the stock market, and their personal household earnings. The surveys also monitor anticipated changes in spending for a variety of different products and services, changes in expected rates of saving, and primary investment objectives.

This report is based on data derived from a series of questions about primary residences and second or vacation homes. These questions identified current ownership of vacation homes and alternatives to full ownership (e.g., time share, private residence clubs, and destination clubs). Plans for major remodeling and/or acquisition of a new primary residence or second home (by a new building or the purchase of an existing home) were identified.

For much of the preceding, the report also provides data for demographic segments within the affluent population as well as references to historical information (Fall 2002 and Spring 2005 surveys that included some similar questions) where available.

Research Methodology
This research is based on self-administered questionnaires mailed to a randomly selected, national sample of 3,900 men and women in households that, based on their income and ownership of certain assets, were expected to meet the minimum net worth requirement of $800,000.

The profile of the sample is as follows: $339,000 average household income, $3.1 million average household net worth, and $1.7 million average household investable assets. The average value of their primary home is $1.2 million. The average age is 53 while 91% are married and 52% are males. The sample represents 33 states plus the District of Columbia.

The overall survey response rate was 12.4 percent. These survey results are based upon the 398 men and women who promptly responded to the survey and met the minimum net worth requirement. The maximum margin of error of this survey, at 95% confidence, is five percentage points.