Forecasts of New Home Acquisitions and Remodeling by The Affluent Market: Primary Residences and Vacation Homes

The data in this report was drawn from the Spring 2005 Survey of Affluent Americans, the seventh in an ongoing series of twice-yearly studies of the most affluent 10% of U.S. households. 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.

The recently completed survey included a series of special 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, fractional ownership/private residence clubs, and destination clubs). Plans for major remodeling and/or acquisition of a new primary or second home (by a new building or the purchase of an existing home) were identified. Plans to consider the purchase of a vacation home through an alternative to full ownership were also measured.

For much of the preceding, the report also provides data for demographic segments within the affluent population as well as references to historical information (a Fall 2002 survey that included questions on home acquisition/ownership and remodeling plans) where available.

The respondents in this survey reported an average net worth of $2.7 million and an average $369,000 annual income.

Includes 7 tables.