Image via Google Images
Baby boomers are getting bumped in the home buying game by the younger generations, especially the Millenials. It was only a matter of time before it happened, but now studies show us the proof.
Generational Trends in Home Buying
The National Association of Realtors (NAR) recently released a new study, the 2015 NAR Home Buyer and Seller Generational Trends study, where they evaluated age-based differences in recent buyers and sellers from 2014. The findings are not all that surprising.
- For the second year in a row, the largest group of buyers were 34 and younger, comprising 32 percent of buyers – double that of Baby Boomers.
- Generation X (ages 35-49) was the second in line with 27 percent of sales.
- 80 percent of Millenials and Gen X-ers believe their home purchase is a good financial investment.
- 90 percent of Millenials worked with a real estate agent.
Lawrence Yun, chief economist for NAR, pointed out that the numbers for Millenial buyers would be higher if not for certain obstacles like low wages, underemployment, increasing rents, and skyrocketing student debt. All of these are a factor in their ability to save a down payment.
Other interesting numbers from the study include:
- The average age of a Millenial buyer was 29.
- The average age of a Gen X buyer was 41.
- 39 percent of Millenials cited having a home of their own as a reason to buy.
- 75 percent of Millenials were influenced by the quality of the neighborhood and 74 percent wanted convenience to work.
- Gen X buyers said proximity and convenience to schools was most desired in a new home.
Thanks to programs like the return of the three percent down payment from FHA and others, younger buyers and low-to-moderate income buyers have more options for buying a home. As time goes on, these numbers will surely increase.
A look ahead
Experts are already looking to the future and have started studying the next generation, Generation Z who are currently 13-17 years old. A whopping 97 percent believe they’ll own their home at some point in their lifetime. Before they buy, they have goals they’d like to achieve:
- 60 percent want to graduate college
- 59 percent want to get married
- 58 percent plan to own a pet
- 21 percent will have children
While boomers are aging out and slowly being overtaken by the younger generations, it’s clear that the kids are paying attention to their parents and grandparents. They understand the importance and benefit of owning their own home. We can all be proud of that.
Leave a Reply