The allure of owning a home, synonymous with stability, independence, and achievement, fuels the American dream. Yet, beneath this aspiration lies a void: a lack of essential knowledge integral to realizing this dream. In a new study, Lombardo Homes shed light on the gaps in Americans’ understanding of essential concepts related to home-buying, renovating, and building.
Lombardo Homes designed the American Homeowner Knowledge Quiz, consisting of 25 multiple-choice questions, to gauge the nation’s grasp of homeownership essentials. Respondents’ answers were graded on an A-F scale, with more than 50% correct responses required to consider a question accurately answered. Surprisingly, only 14 questions were answered correctly, leading to an overall quiz failure.
Analyzing the results across different categories, the study found that Americans scored best in the home buying section, correctly answering 7 out of 10 questions. Concepts like pre-approval letters, home equity, and real estate agent commission were familiar ground. However, there were notable gaps, such as the median home sales price in 2023, with only 24% of respondents accurately identifying it as $436,800.
The study’s lowest scores stemmed from the home renovating and maintenance section, with only 3 out of 7 questions answered correctly. While respondents were acquainted with HOAs and shingle roof lifespans, many were in the dark about water heater longevity and exterior wall sheathing.
When it came to home building, Americans scored slightly better, with 4 out of 8 questions answered correctly. Key terms like home appraisal, home warranty, and closing costs were within their grasp. But there are still knowledge gaps, especially when it comes to a “punch list” and knowing the optimal clearance between kitchen countertops and overhead cabinets.
The study also broke down quiz results by generation. Baby Boomers scored the highest, answering 16 questions correctly. However, this still resulted in a “D” grade. Gen X got 14 correct answers, excelling in home buying but failing in renovation and building questions. Millennials answered 15 questions correctly, earning a “D” grade, and their knowledge gaps show when it comes to renovating and building concepts. Lastly, Gen Z’s performance was the lowest, with only 10 correct answers, revealing their home buying, renovation, and building knowledge challenges.
So, there you have it – a revealing glimpse into the reality of homeownership knowledge across America. The study’s findings aren’t just numbers; they reflect a deeper challenge. As we strive to achieve the American dream of owning our own homes, it’s clear that there’s some homework to be done. From the basics of mortgages to the nitty-gritty of maintenance, it’s a journey that demands more awareness.
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But here’s the thing: knowledge gaps are opportunities for growth. By acknowledging these gaps and working to fill them, we can pave the way for a future where homeowners are truly informed and empowered. So, let’s take this insight and build a stronger foundation for our homeownership dreams.
You can view the homeownership study in full here.
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