Americans earning at least $75,000 per year are buying more houses than their parents did at a comparable age, with each generation outpacing the previous generation's home purchase trends, according to the Coldwell Banker 2006 Homeownership in America Study.

The study's data shows that 66% of survey respondents in the Silent Generation (age 61 and up) have owned between two and five homes. Already, 66% of Baby Boomers (age 42 to 60) have owned a similar two to five homes. The younger generations surveyed are mimicking these homebuying habits. About half (48%) of Generation Xers (age 32 to 41), and more than one-third (36%) of Echo Boomers (age 31 and younger) have owned between two and five homes. Approximately 58% of respondents have owned more homes than their parents did when their parents were at a comparable age.

"These findings suggest that this trend will continue as the younger, upper income generations age," says Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate Corp. "Baby Boomers have already equaled the homeownership pace of those 61 and older, and they remain in their prime homebuying years. The fact that Generation X and Echo Boomers are indicating that they have owned multiple homes already shows that they understand the value of buying and owning real estate."

The study also points out that homebuyers do not appear to be collecting houses as a means to expand their financial portfolios by constantly moving to bigger and more expensive houses. Instead, they move according to lifestyle needs.

 
Star Posted by Mario Trejo Romero, CRS, CDPE on 01/13/2007 03:07 PM   Comments (16)  
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16 Comments on Younger Generations Buying More Houses

JAN
13
2007
153,251 Points 21 Featured Posts Localism Sponsor

Hey Mario,

I think the results would be a little different in California with the home values out here..lol

But many are moving from So. Cal to Nor Cal, due to the affordability factor :)

Scott
1:00pm • #1
3 Featured Posts

I actually sent this report to my real estate agents on Monday with a little note of how important is to become more internet savyy and how by joining AR can help them reach this new wave in demographics. 

Thank you for posting this report Mario!

2:29pm • #2
131,378 Points
My favorite thing about working with first time home buyers in this market?  No house to sell!
3:33pm • #3
1,951,415 Points 478 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

RICK BELL deserves a reward for that observation.

The passion of most real estate agents for listings really cools in a BUYER'S MARKET.

I love it.

 

Lenn
4:04pm • #4
2 Featured Posts
The younger generations look at real estate more as an investment than our parents did. They are more apt to buy and sell more as an alternative to other investments.
6:07pm • #5
122,017 Points 6 Featured Posts Outside Blog
I know that is true. I've own the same number of houses as my mother....but my grandmother has edmore than both of us combined...she just bought a townhouse 2 weeks ago.
6:35pm • #6
7 Featured Posts
Mario-  Great Post !!  I think that Buyers want the biggest house they can get both for the investment and the status of having a large home...We live a materialistic society...it's all about what we have not who we are....
6:54pm • #7
392,876 Points 5 Featured Posts Outside Blog
great insight Mario. I was surprised to find out when I talked to Xers and Echo Boomers that many owned ahome but where also thinking of purchasing another one in the next six months, either a lot for invesments or fix a home and flip it. after a year or 2. They are savy, well informed and you are right, they are thinking investment before all.great blog.
8:56pm • #8
221,087 Points 56 Featured Posts Outside Blog

Mario, I had missed this study by Coldwell Banker.  It's funny to compare your house buying habits with your parents, but the study is right on.  Maybe we're less emotionally attached to these homes.  Congratulations on the gold star.

Ines
10:10pm • #9
190,890 Points 7 Featured Posts Outside Blog

Mario,

Thanks for the post. I did not see this, as an ERA agent. But certainly, the parallels are there and we are seeing these trends across the board.
10:34pm • #10
101,888 Points 1 Featured Post Outside Blog

Young homebuyers are a lot more savvy then we were when we were younger.  Lifestyle moves I would probably question, however.

KenDate
11:08pm • #11
JAN
14
2007
298,703 Points 49 Featured Posts Outside Blog

Mario, thanks for the commentary and report.  I certainly fit into these findings myself (oh, except for the income part =)  As a new agent I hope to meet that threshold by the end of my 2nd year).  I do find that the homes I've had have suited my needs and lifestyle and, as Ines comments, I've not been emotionally attached to any. 

 
7:35am • #12
623,003 Points 4 Featured Posts Outside Blog
I think a lot of it boils down to the current younger generations wanting now what their parents and grandparents took a lifetime to aquire and achieve. 
12:30pm • #13

Lloyd said: "I was surprised to find out when I talked to Xers and Echo Boomers that many owned ahome but where also thinking of purchasing another one in the next six months, either a lot for invesments or fix a home and flip it. after a year or 2. They are savy, well informed and you are right, they are thinking investment before all."

HUH???  Taking one to two years to flip a house is a ridiculous investment strategy; especially in FL where sales and prices are tanking every week.  Talk about extreme negative cash flow w/little or no appreciation.....

Smart RE investors will be on the sidelines for the next few years while the market shakes the suckers out of the market.

Maybe they are reading real estate reports from 2005 and think it's current info....LOL

Regards
Stan
12:38pm • #14
1,157,693 Points 29 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master
I missed this information so thank you for sharing.  A very interesting study, yes the younger generation wants more and wants it now.
1:09pm • #15
742,060 Points 18 Featured Posts Outside Blog Called Shot Master

Our parents respected and feared debt more than we do (I'm 54) and the next generation does not remember a time when 20% down was a firm rule, and 100% funding, ARM's etc., did not exist. 

Not pining for the old days, but still connected to the generations who saw the Great Depression.
2:46pm • #16


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