According to the 2017 NAR Housing Trends Report, Millennials made up the largest group of buyers. Read more about those finding in Part 1, NAR's Housing Trends Report (Millennials).
Here is a quick video of just some of the overall finding of the buyer demographics report, with more details of the other buyer groups below the video.
America’s Second Biggest House Buying Demographic
Making up 28% of new property purchases in America, people aged 37-51 are America’s second biggest house buying demographic. What research also shows, however, is that people aged 37-51 are also the most ethnically diverse, likely to be married with children, and the most likely to buy homes at a higher medium price per square foot than other demographics.
On average, 37-51-year-olds want properties in the best neighborhoods, in the best commuter areas, and close to the best schools in town. Moreover, with being in their peak earning years, people aged 37-51 are much more likely to invest in buy to let properties and second homes for their own personal use. All that said, catering for Americas second most significant house buying demographic can get a little more complicated.
Because the 2008 financial crisis had the most detrimental effect on today's 37-51 age group, 27% of people in this demographic can be seen to have higher than average debt to income ratios. At the same time, members of this demographic are 14% more likely to be returning to the housing market after a distressed sale experience. All this being the case, it is important for realtors to identify the exact reasons for buying among this demographic, before discovering homes and Colorado home lenders whom can meet such buyers requirements accordingly.
Baby Boomers & Elderly Buying Demographics
According to the National Association of REALTORS®, people aged 52-61 and 62-70, represent just 16% and 14% of new home purchases in the United States. The good news, however, is that such buyers are still in need of a wide variety of realtor and Colorado home lender services.
Representing the demographics most likely to seek cash out refinancing for second homes and retirement income subsidization, older demographics are also the most likely to look for larger multi-generational properties when moving. At the same time, statistics show that buyers aged 62-70 are often prepared to move the longest distance (usually 25 miles) when moving, due to desires to be closer to friends and family.
The Silent 71-91 Generation
Almost completely off the radar when it comes to new home purchases, buyers aged 71-91 make up just 8% of new property sales in America. For the most part, this is due to lower median incomes and less confidence when it comes to participating in large real estate transactions. The good news for the average Colorado home lender, however, is that the so-called ‘silent generation’ can still be encouraged back into the property market thanks to instruments such as reverse mortgages and cash out equity refinancing.
What else do the Statistics Say?
One of the most important factors for Realtors and Colorado home lenders to keep in mind when it comes to property sales, regards the fact that 66% of home buyers are made up of married couples. At the same time, 62% of new property buyers have at least one child and the most common reason people cite for buying property lies with a desire to own property rather than rent.
Of course what industry professionals really need to know is how all of the above statistics really impact the housing market itself. What data does show, however, is that the highest buyer demographics (73% on average) are currently showing a preference for single family homes and townhomes over condominiums, mobile homes, and multi-family residences.
In short, what nationwide real estate data seems to show is a seismic shift among buyers away from inner-city locations where they have been renting, to properties in America's suburbs. The only question is, will this trend eventually start affecting inner-city property prices? Or is the shift simply to be expected given the fact that more millennials are settling down and looking for the best place to start raising a family?