The homebuilders of today study the different generations of people and compare them with the product of homes they are building to target the different buyer profiles and their needs.
In the last four years, 11 publicly traded home builders have announced a new entry level brand for Gen Y (also known as millennials) and another 6 builders have announced a new retirement brand for the baby boomers.
Gen X, those born in the 1970s is attracting a lot less attention from home builders these days. Why you ask? Gen X has fewer people- there are 41 million in the Gen X group – that is 2 million lower in number than those born a decade before them and 3 million lower in number than the decade after them.
They are less urgent to buy. Lifestyle changes such as marriage, kids, divorce, and retirement drive many home-buying decisions. Since most of Gen X’ers’ have kids that are already far along in school, they have less urgency to buy.
John Burns Real Estate Consulting asked the 23,000 new home shoppers who took their Consumer Insights survey about the lifestyle changes that influence their decision to move. Here is the breakdown by generation:
- Gen Y or Millennials - 55% of new home shoppers under 35 years of age responded that a growing family is the primary reason they are buying a home. 40% said marriage was the primary reason.
- Gen X. shoppers ages 36–50 are the least likely to be motivated by a lifestyle change. The most common lifestyle change is a new child according to 36%.
- Baby boomers- 57% of shoppers aged 51–69 stated retirement as a primary motivation for moving, followed by becoming an empty nester (49%) and a desire to be near grandkids (39%).
Gen X needs more attainable home prices – they are also known as the foreclosure generation, Gen X has both bad memories from the Great Recession and the desire to return to homeownership.
Bottom Line - all is not lost for Gen X. They are better educated than prior generations and are emerging into the years where they become the senior executives at their companies.
Keep in mind that whether you are interested in buying a home or selling a home, a Realtor should represent you– this person is working for your benefit and will help you navigate through the buying or selling process. I have thirteen years in New Home Sales and sixteen years in General Real Estate sales!
Thanks and make it a terrific day…………Robin