Home Buying - A Generational Breakdown
Who’s Buying Houses? Everyone!
We’ve all heard it’s a seller’s market. Interest rates are at record lows, and the number of buyers is much higher than the number of homes for sale. But who are these buyers? Every year the National Association of Realtors (NAR) writes a Home Buyers and Sellers Generational Trends Report. This report provides insight into the differences and similarities among the different generations.
Millennials (Age 22-39) represent the biggest percentage of home buyers at a whopping 38%. Gen Xers (Age 40-54) come in at 23%. Boomers (Age 55-73) represent 33% of home buyers, while the silent generation (Age 74-95) represent a mere 6% of home buyers. It’s no surprise that the biggest percentage of home buyers are those who are going through a season of change. Millennials are getting settled in their careers and looking for a home to grow their family. While boomers have children that have flown the nest and they’re looking to downsize, or perhaps relocate to warmer climates.
Each generation of home buyers present a unique set of needs. For example Millennials…First, lets get this out of the way, I know Millennials hate being called Millennials. I too, am a Millennial. But, none the less, the term exists, so why not embrace it? So what does a Millennial consider important when shopping for a house? Can a Millennial even buy a house? Aren’t we riddled with student loan debt? Underemployed? Entitled? Well, as stated above, 38% of homebuyers were Millennials! Realtors, lenders, and home builders are all vying for the attention of our generation.
Millennials want something different than the “typical” homebuyer. We don’t find value in a formal dining room, a giant owner’s suite, or a large ornate home in the suburbs. What we do want is something practical, efficient, technologically enhanced, and close to restaurants and entertainment. We want a small yard for our cherished pet to play. Oh, and since we grew up in the age of Joanna Gaines, we’d love a few “Fixer Upper” projects.
When looking for a Realtor, we want someone we can relate to. Someone who looks fun, friendly and approachable on their Insta page, but who also knows their stuff. An agent that responds to us immediately when we text, and doesn’t just leave our message as “read”. 5 star Google reviews? Yes, those are important too. We want to feel like our agent has our back and has our best interests in mind. That they will confidently and carefully lead us down this path to homeownership. We don’t want to feel like we’re talking to a sales person.
Now the part we’re not so sure about… Financing. How much money do we have to put down? What credit score do we need? Can our parents give us some money to buy the house? Will our burdensome student loans prevent us from buying? How much can we afford to spend every month on a house payment? We need to know about the loan products that don’t require a lot of money down.
At First Saturday Real Estate, we embrace the different needs of our buyers. We enjoy spending time getting to know you. It’s important to us to know exactly what is going to make you happy. This is more than a business transaction to us. We’re committed to you. Your needs. Your wants. We have helped people from age 19 to age 85 buy a home. No matter what season of life you’re in, we’re here to help.