Originally posted April 20, 2016 by Gary Picariello at TheRealDaily.com.
The Home Buyers and Sellers Generational Trends Report provides insights into differences and similarities across generations of home buyers and home sellers.
One consistent finding for the last three years of reports has been that “Millennials (buyers 18 to 35) make up the largest share of home buyers at 35 percent.” In fact, says the NAR, that percentage has consistently grown over the four years of reports.
But don’t think that every other demographic is a dead horse.
Gen X is at their peak income
More Gen X respondents own than rent, at 66 to 30 percent respectively. However, like millennials, those that aren’t buying cite the inability to afford to buy a home as their main reason for not doing so.
Furthermore, states an article in Economists Outlook, “Gen X’ers also are in their peak income-making years and have the highest median priced home of all other buyers and the largest homes in median square footage and bedrooms.”
The annual Realtor.org report feels that looking at regional attitudes towards buying, Gen X is fairly optimistic across the board although there are differences:
In the Northeast, 86 percent feel that buying a home is a good financial decision while 79 percent feel ownership is part of their American dream.
In the Midwest, 93 percent feel that buying is a good financial decision while 86 percent believe owning is part of their American dream.
In the South, 90 percent feel that buying is a good financial decision and that ownership is part of the American dream for 91 percent.
In the West, 92 were percent in favor of buying as good financial decision and 86 percent believe owning is part of their American dream.
The professional touch
When it comes to purchasing a home through an agent, there isn’t that much of a disparity between millennials and Gen X buyers. Realtor.org’s Trends Report points out that “Eighty-nine percent of millennials, 87 percent of Gen X buyers, and 85 percent of younger boomers purchased their home through an agent.”
Buyers from all generations primarily wanted their agent’s help to find the right home to purchase.
Buyers were also looking for help to negotiate the terms of sale and to help with price negotiations. Help understanding the purchase process was most beneficial to millennial buyers at 71 percent.
Referrals continue to be the way that most buyers find their real estate agent. Referrals by friends, neighbors, or relatives were higher among younger buyers such as millennials (46 percent) and Gen X (43 percent) more than with the older generations.
Millennials may make up the largest share of home buyers but it’s apparent that Gen X isn’t too far behind.