The Traits of Generation Y Home Buyers

The Traits of Generation Y Home Buyers

There are different and unique trends among the generations when it comes to purchasing a home. The reason for buying , what kind of home are they buying and where they are buying differs between the five major generational groups; Gen Y, Gen X, Young Baby Boomers, Older Baby Boomers and the Silent Generation.

The largest share of home buyers are members of Generation Y (Gen Y), also known as the Millennial generation. These are buyers born between 1980 and 1995 and are aged 33 and younger.

According to information compiled by the National Association of Realtors, NAR;

 Most of the  Gen Y buyers are first-time buyers who primarily purchase a home just for the desire to own a home of their own. They tend to buy older homes because of lower price and overall value. These buyers typically buy within a 10 mile radius of their previous residence. Outside of the affordability of a home they tend to place a high preference on convenience to their jobs.

As with most younger buyers, Gen Y buyers rely on the internet in their home search process . They are most likely to look for information on the home buying process as well as searching for properties. Many use mobile devices during their search.

Most buyers realize the many benefits from working with a real estate agent. When it comes to choosing an agent, Gen Y buyers usually place the agent’s honesty and trustworthiness at a high level. Gen Y buyers are predominately referred to their agent through a friend, neighbor or family member. They want to work with an agent to help them understand the process and the benefits of their agent pointing out unnoticed features and faults in a property. The preferred method of communicating with their agents is via email or text messaging.

Nearly all Gen Y buyers take out a mortgage in order to purchase their home. Their primary source of down payment is their savings, however, more than half said that their student loan debt delayed their saving. They also are more likely to use a gift or a loan from a friend or family member.

While Gen Y buyers feel that purchasing a home is a good financial investment it does not come without making certain financial sacrifices such as cutting back on their spending for luxury and non-essentials items, spending on entertainment and clothing.

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View all single family houses on the market in Attleboro.