The Age of Buyers is Skyrocketing, per NAR Economist

By
Real Estate Agent with Compass CA DRE# 01215160

The National Association of Realtors shared information from Dr. Jessica Lautz, Vice President of Demographics and Behavioral Insights at NAR, regarding the ages of buyers.

In short, buyers' ages have jumped from a median of 31 in 1981 to 47 in 2019. What is even more interesting to me is that the median ages of repeat buyers has risen from 36 in 1981 to 55 in 2019!

You can read her complete article by clicking on this link, "The Age of Buyers is Skyrocketing...but Not for Who You Might Think" It is not a long read, but full of interesting thoughts and possibilities.

There are some interesting target marketing possibilities here.

Her graph, below, readily shows the clear trend.

NAR graph, median age of home buyers

I would dearly love to be able to break this down by state and city. Does San Francisco see the same ages and the same trend? What about the Silicon Valley?

I might need to dig a bit deeper.

 

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI 01/15/2020 09:08 PM
  2. Brian England 01/16/2020 10:00 AM
  3. Roy Kelley 01/21/2020 01:00 AM
Topic:
Real Estate Market Trends
Groups:
The Lounge at Active Rain
Target Marketing
Local Expert
Market Reports
Tags:
first time buyers
repeat buyers
buying trends
marketing opportunities
age of buyers

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Rainmaker
1,850,558
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Brian England - I see owners staying in their homes longer now than they did 10 years ago. Will that continue? Time will tell.

Jan 16, 2020 08:42 AM #16
Rainmaker
1,850,558
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

George Souto - I do believe the high cost of housing has owners staying put longer than before. Prices have risen dramatically since 1981; the bright spot is that interest rates are so very low. Do you remember the days in the 1980s when interest rates were 13% and more? Not much was selling on the SF Peninsula then; cash buyers made out like bandits.

Jan 16, 2020 08:44 AM #17
Rainmaker
2,058,634
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Lottie - this is both interesting and surprising to me.  I would love to dig deeper to see explainations.

Jan 16, 2020 10:19 AM #18
Rainmaker
1,850,558
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Did you click on the link, Grant Schneider and read the article? It's brief, and perhaps raises more questions. I asked our Compass Chief Economist if he had breakdowns for San Francisco and the Silicon Valley, but he said he doesn't. The NAR data apparently came from a relatively small poll taken of buyers (don't know size or location.) Our economist sent me some graphs of my area which talk about demographics--I'll use them in a post soon.

Jan 16, 2020 11:43 AM #19
Rainmaker
2,117,022
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Lottie Kendall - I would also like to see this breakdown by City and State. As it is written, the article is subjective. By the way, did you read a recent blog post by Liz and Bill Spear, "The Kids are Alright?" I thought it was very interesting! 

Here in Flower Mound, buyers are moving out on average every five years! People like me living in a house (22 years) are considered O-L-D and the assumption to a Real Estate Agent (if I wasn't an agent) would be everything needed to be updated.    

Jan 16, 2020 05:04 PM #20
Rainmaker
1,850,558
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Hi Patricia Feager, MBA, CRS, GRI,MRP - I did read Bliz' recent post about Millennials are Alright - loved it.

I responded to Grant Schneider's comment as follows:  I asked our Compass Chief Economist if he had breakdowns for San Francisco and the Silicon Valley, but he said he doesn't. The NAR data apparently came from a relatively small poll taken of buyers (don't know size or location.) Our economist sent me some graphs of my area which talk about demographics--I'll use them in a post soon.

 

Jan 16, 2020 05:21 PM #21
Rainmaker
1,850,558
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Patricia Feager, MBA, CRS, GRI,MRP - I am working with past buyers (young ones) who bought 5 years ago; 2 little children now and they are wanted to move up. Like you, I stayed in my house many years (35!)  My hunch is that move-up buyers stay put longer than 1st time buyers.

Jan 16, 2020 05:23 PM #22
Rainmaker
5,628,159
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is an excellent report to share.

Have a great day and an outstanding weekend.

Jan 17, 2020 06:32 AM #23
Rainmaker
1,850,558
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Thanks, Roy Kelley - I found the statistics quite interesting and thought-provoking.

Jan 17, 2020 06:41 AM #24
Ambassador
1,956,668
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Hi there, Lottie, I recently took a course about demographics. We have to pay attention to the statistics.  We work with a lot of boomers. For our multi-gen niche - boomers and their millennial children. Thanks for sharing this important data. D 

Jan 18, 2020 08:15 AM #25
Rainmaker
1,850,558
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Hi Debb Janes EcoBroker and Bernie Stea JD - demographics are interesting and helpful to us. I'll be sharing more next week.

Jan 18, 2020 09:13 AM #28
Rainmaker
3,885,190
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Lottie Kendall ,

Thank you for sharing these demographics..very interesting. We see lots of younger buyers in Austin moving here and they are buying.

Jan 19, 2020 08:12 AM #29
Rainmaker
1,850,558
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Hi Dorie Dillard CRS GRI ABR - Austin is a happening place! Happy Sunday!

Jan 19, 2020 08:34 AM #30
Rainmaker
1,864,515
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

This doesn’t surprise me because of all of the Gen Xers / boomerang buyers that in the market the last couple of years 

Jan 21, 2020 06:12 AM #59
Rainmaker
3,317,585
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Lottie,  Excellent information you are pointing out to us in the Rain.  I know 55 and older like to new community for that age group.

 

Jan 21, 2020 08:29 AM #60
Rainmaker
1,850,558
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Hi Michael J. Perry and Will Hamm - seems like you are seeing in your different markets the same thing I'm seeing here in mine--and the same thing this data shows.  Lack of inventory and high prices here is hampering our move-up buyers; I think we'd be seeing more move-up buyers at earlier ages if there were more places for them to purchase.

Jan 21, 2020 01:16 PM #65
Rainmaker
1,763,499
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

What an interesting article. I gues it makes sense. Baby boomers were a big part of the population and now we are starting to downsize

Jan 23, 2020 04:17 AM #76
Rainmaker
1,850,558
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Lise Howe I suspect that in many parts of the country, mine included, the lack of inventory accounts for the delay in the move-up market. I found the article to be thought-provoking.

Jan 23, 2020 06:48 AM #77
Rainmaker
66,345
Ricardo Mello
Manhattan Miami Real Estate - Manhattan, NY
Manhattan & Miami Real Estate Agent

Interesting!

Feb 05, 2020 07:12 PM #78
Rainmaker
1,850,558
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

I thought the NAR report was interesting, Ricardo Mello - are you seeing similar trends in your marketplace?

Feb 05, 2020 08:55 PM #79
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Lottie Kendall

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