Gen Y Buyers (Millennials) 28% 1980 to 2000 1,700 sf home $165,000
Gen X Buyers (most buyers) 31% 1965 to 1979 2,100 sf home $235,000
Baby Boomers 18% 1955 to 1964 the older generations
“older” Baby Boomers 14% 1946 to 1954 generally owned their residence
Silent Generation 10% 1925 to 1945 before purchasing next home paying
G.I. Generation >1% before 1925 cash or financing less
The National Association of REALTORS® recently issued a focus report on the different Buyer and Seller trends between generations. There was A LOT of information in the report, but here are a few interesting details:
Younger buyers purchase close to their previous home looking for convenient locations close to work with good schools. They are more apt to make concessions when negotiating to get the home purchased. Most have to finance most, if not all of their home purchase.
80% of home buyers over the age of 57 purchased single family home, but it was increasingly common for them to purchase a townhome or condo. Older generations are less likely to compromise for what they want in a home but place a larger importance on landscaping for energy conservation and environmentally friendly community features.
The majority of homebuyers start looking for their home online. Younger buyers tend to use the internet through their entire purchase while older buyers find their home on the internet and then contact their real estate agent.
Among all generations of home buyers the first step in the home buying process is looking online for properties for sale.
Buyers gain many benefits from working with a real estate professional. Among age groups, younger buyers are more likely to want the agent to help them understand the process as they are more likely to have never purchased a home before.
Younger sellers are more likely to use the same real estate agent or broker for their home purchase than older sellers.
Older sellers will interview several before choosing their agent.
According to the Joint Center for Housing Studies Of Harvard University of 2013
“An estimated 16 million senior households will be moving in the next decade. A large number will look for different housing opportunities, creating demand for new types of units in communities where they currently live as well as in the areas that traditionally attract retirees.
With the baby-boom population moving into the 65-and-over age group, the number of Senior households will surge in 2013-2023. These older households are projected to increase by fully 9.8 million and it does herald a significant shift in the nature of demand for housing and home improvement.”
The National Association of Realtors noted in March 13, 2012,“Over the next two decades, the aging baby boomer generation will swell the nation’s senior population by 30 million. That demographic shift will likely help increase the supply of housing, since people over age 65 typically release much more housing than they absorb.”
NAR President Moe Veissi added that current market trends favor would-be home owners of all ages. “As the supply of rental housing continues to fall, rents are increasing,” he says. “At the same time, affordability for home owners is at a record high. For buyers who qualify and are ready to assume the responsibilities of owning a home, opportunity is knocking.”
Whether you are looking for your first purchase, second or vacation home, investment or your last home, we’re here to help you every step of the way. We have professional agents who are experienced with working with the wide range of buyers and sellers we have in the Salt Lake City area.
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