NAR produces Generational Home Buying Report

by Gary Sandler, Las Cruces Sun News

Millennials & Gen Y (born 1980 to 1998): This group is the most productive. The report noted that buyers in this category presently account for 34 percent of all transactions. Two-thirds of those buyers were first-timers, and just under half have children under the age of 18 in their households. Married couples accounted for two-thirds of the participants, while 13 percent were unmarried couples.

Gen Xers (born 1965 to 1979): These buyers account for 28 percent of the total number of buyers surveyed, and are the most likely to be married and have children under the age of 18 in their home. They purchased the largest homes, based on median square footage and number of bedrooms, and were particularly interested in living in locations that are convenient to their jobs. They are also the most ethnically diverse group of home buyers, with just over one-in-five identifying that they are a race other than White/Caucasian. When it comes to income, they are the highest earners at $106,000 per year. The quality and convenience of school districts are high on their list as well.
Younger Baby Boomers (born 1955 to 1964): Buyers in this category make up 16 percent of recent buyers. Among the reasons for purchasing are to facilitate a job relocation, downsize to a smaller home, and to move closer to friends and family. As the so-called sandwich generation, these buyer are more likely to purchase a multi-generation home that can accommodate both children and aging parents. At 20 years, these buyers project that they’ll live in their homes longer than any other generation.

Older Baby Boomers (born 1946 to 1954): Some 14 percent of buyers fall into this category. As with the younger baby boomers, this generation likewise cites closeness to friends and family, retirement and a desire for a smaller home as their motivations for moving. They typically move the longest distance and are the least likely to compromise on their home purchase. It is interesting to note that approximately 10,000 baby boomers have been turning 65 each and every day since January of 2011, and will continue to do so until 2030.

The Silent Generation (born 1925 to 1945): This category of buyers is likely to be retired and has the lowest median household incomes across all categories. They make up eight percent of all buyers. They are also the least likely to purchase a traditional detached single-family home. Just under one-in-four opted for senior-related housing, and as a whole tended to purchase the newest homes. As with their younger baby-boomer peers, moving closer to family and the desire for a smaller home were high on their lists.

One thing that all buyers surveyed had in common, according to NAR, is that “all generations of buyers continue to consult a real estate agent or broker to help them buy and sell their home.”

The generational report can be accessed online at www.nar.realtor. Highlights of NAR’s 2017 Profile of Home Buyers and Sellers can be found at the site as well.

See you at closing.

Gary Sandler is a full-time Realtor and president of Gary Sandler Inc., Realtors in Las Cruces. He can be reached at 575-642-2292 or Gary@GarySandler.com.

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