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.
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
Sources:
https://www.nar.realtor/sites/default/files/reports/2017/2017-home-buyer-and-seller-generational-trends-03-07-2017.pdf
