06/07/2022

Citizens Survey Identifies Pessimism About Homeownership, Missed Opportunities for New York City Homeowners To Leverage Untapped Equity

Research Also Shows Gender Disparity in Life Planning

NEW YORK,– New York City residents who are not homeowners are increasingly pessimistic about their prospects for purchasing a residence and are also missing out on all-time high home equity values, according to new research released by Citizens. This pessimism is especially acute when it comes to female residents.

“It’s important for New Yorkers to understand and consider all of their options as they consider buying a home or as the value of their home increases,” said Ace Watanasuparp, National Sales Director, based in New York City, Citizens. “Home Equity Lines of Credit are a great tool for home owners to tap into the growing value of their home, with practical uses to help ease a family’s budget.”

Home ownership attitudes differ between males and females

While the overall desire for homeownership is not significantly different between genders, attitudes about saving and reaching goals differed greatly by gender. Of non-homeowners, more than half (54 percent) said that they don’t think they will ever be able to afford a home in New York City. However, that number drops to 39 percent for males and jumps to 62 percent for females.

Additionally, there is indication that women were willing to make more significant life planning adjustments to attain the goal of homeownership. More than a quarter (26 percent) of female respondents who don’t own their home said they would be willing to put off having children if it highly increased their chances of being able to purchase a home. Nearly a third (32 percent) of respondents said they have taken on an additional way to make income in order to save money towards their home purchase goals.

Homeowners reported high satisfaction for alternative financing options

The research also identified that New York home owners are missing the opportunity to leverage the historic growing equity of their homes and unlock alternative financing options. 2021 market research showed that the average US homeowner was sitting on over $150,000 in tappable home equity, an all-time high.

At the same time homeowners are sitting on record equity, nearly half (46 percent) of New Yorkers said that they are nervous to take out alternative financing options while less than half (46 percent) of New York City homeowners indicated that they had used a Home Equity Line of Credit in the past or currently did so. Similarly, less than half (49 percent) of respondents who were aware of HELOCs selected the correct definition of a HELOC when presented with four options.

For New York homeowners who have used a HELOC, the uses were myriad and extremely positive. Nearly half (44 percent) said they had used a HELOC for home renovations or repairs while nearly a third (32 percent) said they had used a HELOC to buy a second home. Similarly, nearly a third (30 percent) said they had taken a HELOC because the equity of their home had increased, while more than a quarter (27 percent) said they used their HELOC to manage cash flow. Nearly all (91 percent) of those who had used a HELOC were either very or extremely satisfied with their decision.

Additionally, New Yorkers had even more various reasons to use a HELOC:

  • Emergency bill: 25%
  • Debt Consolidation: 24%
  • Lower Interest Rate than other financing options: 18%
  • Childcare: 19%
  • Already refinanced mortgage or cannot: 18%
  • Vacation: 18%
  • Higher education: 16%
  • Preschool or k-12 tuition: 9%
  • Wedding or other special event: 6%

Additionally, the researched showed:

  • Men are also more satisfied with their current housing situation, with 35% saying they are ‘very satisfied’ where they live now, compared to less than one-fourth of women (22 percent).
  • Nearly 9 in 10 (84%) of New York City homeowners are satisfied with their current home, but more than 4 in 10 (41%) are also planning to move out within the next year.
  • 47% listed access to public transport as a top 3 criteria for their ideal neighborhood
    • 38% listed security/safety
    • 28% said great schools
    • 27% lots of greenery/greenspace
    • 23% said quiet
    • 22% said diverse
  • Top 3 deal makers for potential homes
    • 36% in unit washer/dryer
    • 29% said close to good food/shopping
    • 28% large kitchen
    • 25% said balcony/courtyard
    • 22% said reserved parking
    • 22% said close to the subway
  • Top 3 deal breakers for potential homes
    • 30% walk up building
    • 29% said tiny kitchen
    • 28% said not pet friendly
    • 25% said fixer upper
    • 25% said fair from good food/shopping
    • 24% said far from subway
    • 20% said no washer dryer

Citizens recently entered the New York City market and has more than 60 branches conveniently located across the New York City metro area. As the leading originator of home equity lines of credit in the U.S., Citizens is well positioned to help New York homeowners take advantage of their growing equity. New York customers can currently learn more about Citizens national leading HELOC offers online or in branch.

Methodology 
The Home Ownership survey was conducted by Mintel/Comperemedia (www.mintel.com) among 520 residents of NYC, between the ages of 25 and 49, and with a personal income of $75,000 annually or higher. This research was conducted as an online survey between March 30th and April 7, 2022.

Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted among the entire consumer sample of this particular study, the chances are 95 in 100 that a survey result from the entire sample does not vary, plus or minus, by more than 4.2% percentage points from the result that would be obtained if interviews had been conducted among the entire population represented by the sample. Numbers that represent the portion of the sample that are homeowners the chances are 95 in 100 that a survey result from the entire sample does not vary, plus or minus, by more than 5.18% percentage points from the result that would be obtained if interviews had been conducted among the entire population of homeowners in NYC (as represented by the sample).

About Citizens Financial Group, Inc. 
Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $192.1 billion in assets as of March 31, 2022. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a full-service customer contact center and the convenience of approximately 3,300 ATMs and approximately 1,200 branches in 14 states and the District of Columbia. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities. More information is available at www.citizensbank.com or visit us on Twitter, LinkedIn or Facebook.