The National Association of Realtors recently issued a report that provided insights into the similarities and differences across generations of home buyers and sellers over the last 3 years. This report reveled defining characteristics and primary motivations across 5 generations.
At 35%, Generation Y/Millennials (Gen Y) represented the largest share of home buyers. This share showed constant growth over the last several years of home buyer and seller profile reports. With this generation growing up, the report reveled an increased share in those that purchased suburban and detached single-family homes. 45% of Gen Y buyers have children under 18 in the home and 64% are married. Gen Y sellers primary motivation is to sell in order to purchase a larger and more expensive home. The report noted that this generation wanted to sell earlier, but couldn’t because mortgage balances were more than their homes were worth.
26% of recent home buyers are Generation X buyers (Gen X). According to the report, they are the most consistent with their buying trends and are in their peak earning years. Their incomes are the highest among all generations. Because this generation is most likely to be married and have children under 18 in the home, their buying trends are to purchase homes with more median square footage. Location is driven by job convenience and school districts. At 25%, Gen X is the largest generation of home sellers as they look to trade up into larger homes. Like Gen Y, they wanted to sell earlier than they could due to mortgage balances and home values.
The boomer generation had to be split into 2 categories; younger baby boomers and older baby boomers due to differing buying habits. Younger boomers have a higher household median income than older boomers. Younger boomers are more likely to buy a multi-generational home due to children still living at home while also caring for aging parents. Job relocation and change in a family situation are primary drivers for their home purchases. Older Bloomers are often downsizing when buying due to retirement and choosing locations closer to friends and family. When younger boomers sell, they tend to sell and buy in the same price range while older boomers sell and typically downsize.
At only 9%, the silent generation is the smallest share of buyers in the market. They have likely already retired and downsized their home. This generation has the lowest median household income and is the least likely to purchase a multi-generational home. Trends show being close to family and friends is their primary reason for buying or selling. 30% purchased senior-related housing and this generation is the least likely to make compromises when buying a home.
A constant among all generations was consulting a real estate agent to assist with buying or selling their homes. The agent’s reputation was one of the most important factors considered. CoListing's agents understand and find ways to consider these generational factors and trends when they represent their clients. Contact CoListings for a reputable agent that knows how to assist you at any stage of life.
Source: 2016 Home Buyer and Seller Generational Trends 2016 National Association of REALTORS.