We have all heard the adage, “location, location, location” when it comes to buying a new home. And, although location is and will always be extremely important, a homebuyer should really be thinking “interest rates, interest rates, interest rates”.
As Realtors®, we look at many real estate trends, including generational trends in the marketplace. Are you a baby boomer? Then maybe you just purchased a new build in order to avoid renovations or issues with plumbing and electricity. Or are you a Gen Y, a group of younger adults who are the largest percentage of home buyers?
Or maybe you are part of the Silent Generation, one of the least likely to have to finance your next home purchase. Wherever you fall in the generational scale, learning about age trends in real estate can help you better strategize in the market where you are making your financial decisions in home ownership.
Gen Y (born 1980-1995). Gen Y’s are not only the largest share of home buyers at 31% but they are also the largest share of first time home buyers at 76%. This generation has a strong desire to own a home and a large number of them live in urban areas, most likely because low commuting costs and living near public transit are very important to them. Living in urban areas mean they live close to work as well. Their biggest hurdle in home buying is saving for a down payment due to student loan debt.
Gen X (born 1965-1979). The Gen X’s are the second largest share of home buyers but the largest share of home sellers at 29%. This generation leads in home sales primarily due to a desire for a larger home at this point in their life or due to job-related relocation. Their focus is on good quality neighborhoods, convenience to work, and quality and convenience of schools. Their biggest hurdle in home buying is saving for a down payment due to credit card and student loan debt.