According to real estate experts who spoke at an educational webinar produced by the National Association of Home Builders (NAHB) recently, Generation X, young families and adults ages 31 to 45,-are the most likely to a) lead the home-buying recovery, b) decide when it's a good time to invest, and c) influence the new home market with strong opinions about design features. While Gen X isn't the largest population segment of home-buying age, at 32%, it is the most mobile. They will have several different careers in different geographical locations while they raise their families.
Conversely, Baby Boomers, 41% of the home-buying population, are delaying retirement and delaying decisions on downsizing to smaller homes.
Most of the 10,000 buyers and potential buyers in 27 metro areas surveyed were optimistic about a new home purchase. Between 85% and 89% said that it was a good time to buy a home, and only 13% said they thought home prices would continue to fall.
70% said they were willing to pay $5,000 more for a green home, but expected new homes to already have many green technology features. While community amenities are important to Gen X buyers, 46% said they prefer a home in a large-lot, suburban development, versus the 21% looking for a traditional or "walkable" neighborhood.
Webinar panelist Heather McCune, director of marketing at Bassenian/Lagoni Architects in Newport Beach, Calif., emphasized that design will be important. "The notion of ‘build it and they will come' no longer works. Design matters," she said. "Buyers are looking for homes with a connection between indoor and outdoor spaces, even in colder climates, to create the perception of greater home size, even if the space is only usable for part of the year. They also want more storage, an open floor plan and flexibility in the garage," McCune added.
The good news for the market was summarized by NAHB Chief Economist David Crowe. "While Gen X numbers are smaller than the birth cohorts before and after them, their numbers have been enlarged by steady immigration. Gen X may wait longer than their predecessors to establish their own household or buy a home because of the recent recession impacts, but the trends are still likely to occur as they have for past generations."
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