Friday, November 10, 2017

Study Finds Majority of Today's Home Buyers are Millennials

A report entitled “2017 National Association of REALTORS® Home Buyer and Seller Generational Trends” states that, over the past four years, one consistent finding has been that Millenials/Gen Y-ers or those age 36 and younger make up the largest share of home buyers at 34 percent. Half of them were first time buyers. The report showed that this group has been quite traditional in their buying habits opting for suburban detached single family homes.

millennial homebuyers

The next largest group was Gen Xers or those age 37 to 51 who make up 28 percent of home buyers. They are the most ethnically and racially diverse group as 21 percent identified their race as something other than White/Caucasian. And, because generally they are in their peak earning years, they purchased larger homes in terms of median square footage and number of bedrooms.

Baby Boomers were split into two groups due to differing demographics and buying behaviors. Younger baby boomers identified as those age 52 to 61 make up 16 percent of buyers and older baby boomers age 62 to 70 make up 14 percent. Younger baby boomers are most likely to buy a multi-generation home to take care of aging parents, for cost savings and because children over the age of 18 are moving back. The report also indicates that this group projects that they will remain in their home the longest at 20 years. Buyers 71 to 91, referred to in the report as the Silent Generation, represent the smallest share of home buyers at 8 percent. Nearly one quarter of these buyers purchased senior-related housing.

The study also revealed that 88 percent of all home buyers financed their home purchase… a share that decreases as the age of the buyer increases. Home ownership remains among life’s priorities for most Americans. For all three groups under the age of 61, the main reason given for purchasing was the desire to own a home of their own. The household composition for buyers in all age groups was primarily married couples followed by single females, single males, and unmarried couples.

The report also pointed out that it is a continued trend among all generations of buyers to consult a real estate agent or broker to help them buy or sell their home. Buyers need the help of a real estate professional to help them find the right home, negotiate terms of sale, and help with price negotiations. Sellers, as well, turn to professionals to help market their home to potential buyers, sell within a specific timeframe, and price their home competitively. To learn more, Three Rivers Association of Realtors is here to help. Visit our website or call us at 815-744-4520


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