1. NEIGHBORWORKS AMERICA AMERICA AT HOME 2015 Findings from a Telephone Survey of 1,000 Americans on Homeownership, The Home-Buying Process and the Impact of Student Loan Debt Widmeyer Communications, A Finn Partners Company September 2015

2. Methodology This survey was conducted by Widmeyer Communications, A Finn Partners Company, from September 14 – September 18, 2015. The survey was conducted with a nationally-representative sample of 1,000 U.S. adults. It was conducted via telephone by professional interviewers using a random digit dial (RDD) sample. The survey has a margin of error of +/- 3.1 percentage points at a 95% confidence level.

3. Key Findings Homeownership and the American Dream Homeownership remains an integral part of the American Dream, with 57% of Americans saying it is a very important or the most important component. This is especially true among African-Americans who are more likely to say it is the most important component. However, only 9% of Americans say their opinion of homeownership has changed for the better these past 5 years. Close to three out of four Americans say they are confident in their ability to know when the right time to purchase a home is. More than four out of ten adults (43%) say getting married or moving in with a life partner is the appropriate time for purchasing a home. Additionally, the vast majority believe they can find a mortgage that is right for them. Realtors remain the main source of information about homeownership. On average, Americans say it costs homeowners about $15K annually for general home maintenance. This MEAN is driven higher due to renters who on average believe it costs over $20K annually.

4. Key Findings The Burden of Student Loans on the Prospective Homeowner A significant portion of Americans either have student loan debt (17%) or personally know someone who has had to put off a home purchase because of student loan debt (28%). Student loan debt is burdensome. Among those with debt, it is most likely to be the top obstacle to buying a house, above lack of job security or lack of a down payment. One-in-three with debt worry about their student loan debt all or most of the time. Student loan debt has clouded views of homeownership. Those with student loan debt are more likely to say homeownership has changed for the worst over the past five years, that they will not find a mortgage that is right for them, and that the home-buying process is complicated. Those with student loan debt are much more likely to consider renting a home instead of purchasing a home compared to those without student loan debt.

5. Homeownership and the American Dream

6. For the vast majority of Americans, their opinion of homeownership is unchanged for the past five years; just 9% say their opinion has changed for the better. Those more like to say “has changed for the better”: Renters (13%) Non-white (12%) Under 55 (11%)

7. Homeownership is an integral part of the American Dream. Nine in ten (87%) Americans consider it at least somewhat important, including 57% who consider it the most important or a very important aspect of the American dream. 12% 30% Darker color indicates intensity Women are more likely to say most or very important (60% vs. 52%) Older adults (55+) are more likely to say most or very important (61% vs. 51%) Homeowners are more likely to say most or very important compared to renters (61% vs. 47%)

8. African-Americans are especially likely to say that homeownership is the most important part of the American Dream. Greater intensity among African Americans Darker color indicates intensity

9. The salience of homeownership as a component of the American Dream has decreased significantly between 2014 and 2015 for African-Americans and Hispanics. The opposite was true between 2013 and 2014. How important a part of the American Dream is owning a home? % Saying “Most Important”

10. Confidence in the ability to know when the right time to purchase a home remains steady compared to 2014. A majority continue to say they are very confident. Around seven-in-ten are confident overall. 73% Darker color indicates intensity

11. Over the past year, higher income groups have become more confident in their ability to know the right time to purchase a home. The opposite is true among lower income groups, a trend that needs to be monitored moving forward. How confident are you in your personal ability to know when it is a right time for you to purchase a home or new home? % Very confident % Very Confident20142015Difference <$40K37%33%-4 $40K-$59K53%51%-2 $60K-$99K53%61%+8 $100K+67%68%+1

12. More than four out of ten adults say getting married or moving in with a life partner is the appropriate time for purchasing a home. They next most popular choice was having children (22%). If you had your choice, which one of the following life milestones would you (or would you have) wanted to buy a home by or during that time of your life?

13. Close to half of homeowners say getting married or moving in with a life partner is the appropriate time for purchasing a home, while one-third of renters say having children is the appropriate time. If you had your choice, which one of the following life milestones would you (or would you have) wanted to buy a home by or during that time of your life?

14. The vast majority believe they can find a mortgage that is right for them. In fact, the majority has increased slightly since 2014. 80% Darker color indicates intensity +4 agreeing, but less intensity (-2)

15. African-Americans and Hispanics are less confident in their ability to find a mortgage that is right for them. 76% Darker color indicates intensity Lower intensity among African- Americans and Hispanics

16. This confidence has decreased among African Americans and Hispanics over the past year, continuing the trend from 2013. Indicate if you agree or disagree with the following: I am confident in my ability to find a mortgage that is right for me. % Saying “Strong Agree”

17. Indicate if you agree or disagree with the following statements % Strong/somewhat agree Darker color indicates intensity Seven out of ten adults continue to say they believe the home buying process is complicated and they know where to find free advice.

18. Indicate if you agree or disagree with the following statements % Strong/somewhat agree Darker color indicates intensity Homeowners Renters Only two-thirds of renters say they know where to find free advice about the home buying process, and among those intensity is lacking.

19. Americans are divided about whether they feel more or less prepared to purchase a home compared to 5 years ago. 53% 32% Compared to five years ago, do you feel more or less prepared to purchase a home? Groups that tend to feel much more prepared:  Younger women (31%)  30-44 years (30%)  College men (30%)  $60K-$99K (36%)  $100K+ (31%)  Younger homeowners (32%)  Have student loan debt (30%) Groups that tend to feel much less prepared:  Non-college women (25%)  <$40K (32%)  Renters (21%)

20. On average, Americans say it costs homeowners about $15K annually for general home maintenance. This MEAN is driven higher due to renters who on average believe it costs over $20K annually. From what you have seen read or heard, how much would you estimate it costs the average homeowner annually for general home maintenance – upkeep, unforeseen repairs, etc.? Total Mean: $15,070 Homeowner Mean: $12,360 Renter Mean: $20,503

21. Half of those surveyed believe Americans who have lost their home due to a foreclosure must wait 3 years or more before they are eligible to obtain a mortgage, with one-third saying more than 5 years. From what you have seen, read or heard, if someone has lost their home due to foreclosure, how long do they have to wait before they are eligible to obtain a new mortgage to purchase another home?

22. Only one-third of Americans believe there are down payment assistance programs for middle-income homebuyers in their community, including 40% of those with household incomes between $40 - $59,999 a year. To the best of your knowledge, are there any down payment assistance programs for middle-income homebuyers in your community? Those more like to say “yes”: Men (38%) Under 55 (40%) African-Americans and Hispanics (41%) College grads or more (37%) Renters (40%)

23. Among those who say they are aware of down payment assistance programs, only one-third say they have received some or a great deal of specific information about these programs. How much information have you received about down payment assistance programs for middle-income homebuyers in your community? +7% -7%

24. Realtors remain the main source of information about homeownership. Seven out of ten adults say they would be likely to use a realtor to get information about homeownership, including 38% saying they would be “very” likely. Sources of Information on Homeownership % saying “Very likely” to get information from: 20142015 Increase / Decrease Through a realtor 41%38%-3 Through friends, family and coworkers 34%31%-3 Through a web search 34% 0 Through a mortgage lender 26%24%-2 News media, including newspaper, TV, and radio 19%--NA Through a housing counselor 13%11%-2 Social media like Facebook and Twitter 11%8%-3 Those more like to say “very” likely: Women (43%) Under 55 (41%) HH income $60K+ (47%) Renters (42%) Have student loan debt (45%)

25. The Burden of Student Loans on the Prospective Homeowner

26. While not everyone is affected by student loan debt, the impact touches a significant percentage of Americans. Fully 17% have student loan debt, and 28% know someone whose student loan debt delayed the purchase of a home. Americans with Student Loan Debt Americans who Personally Know Someone whose Student Loan Debt Delayed the Purchase of a Home

27. Among those with debt, 57% say that debt is at least somewhat of an obstacle - up from 49% in 2014. Similar to 2014, there is a tangible psychic pain associated with student loan debt, with one-in-three worrying about student loan debt all or most of the time. Americans with Student Loan Debt Among the 17% with Debt

28. Those who are burdened with student loan debt are more pessimistic about homeownership and their prospects of finding the right mortgage. Those with student loan debt are: 10 points less likely to agree that they can find a mortgage right for them 43% strongly agree among those with debt, 53% strongly agree among those without debt 10 points more likely to know about down payment assistance programs 43% among those with debt are aware, 30% among those without debt are aware 8 points more likely to say their opinion of homeownership has changed for the worse over the past five years 19% among those with debt say this, 11% among those without debt say this

29. Though student loan debt does not rank as a high obstacle to homeownership among all Americans, it is the top obstacle for those who actually have student loan debt, followed by lack of a down payment. If you are thinking of buying a home, which of the following is the greatest obstacle to you personally? Other/DK/Not thinking of buying a home: 26%Other/DK/Not thinking of buying a home: 15% Among Those with DebtAmong All

30. Those with student loan debt are much more likely to consider renting a home instead of purchasing a home compared to those without student loan debt. Actions Taken By Those With and Without Debt % saying “Much more likely” to...Total W/ Student Debt W/o Student Debt Difference of W/ minus W/o Consider renting a home instead of purchasing a home 16%21%15%+6 Delay purchasing a new home 16%19%15%+4 Discuss homeownership with friends, family, coworkers who own their home 26%29%25%+4 Seek out counseling from non-profits who work with homeowners in your community 12%14%11%+3 Seek out additional information about homeownership 21% -

31. Looking at a demographic profile of those with debt, student loan debt disproportionately affects women, African-Americans, Hispanics, those in the Northeast, and those under 45. Additionally, 45% of those with student loan debt are renters, compared to 28% overall. Demographic Profile of Those with Student Loan Debt

32. Contact: Christopher Lawrence Director of Research Christopher.Lawrence@finnpartners.com 202-884-7366 Matt Price Deputy Research Director Matt.Price@finnpartners.com 202-518-6484 NEIGHBORWORKS AMERICA AMERICA AT HOME 2015