Homebuyer Trends That Might Surprise You

Every year since 2013, the NAR has been writing the Home Buyers and Sellers Generational Trends Report. This report provides insights into differences and similarities across generations of home buyers and home sellers. It is a key indicator of who our customers are.  The data for the report is compiled from the annual Profile of Home Buyers and Sellers. You can download the entire report HERE for those interested, but it is 145 pages long – so I wouldn’t expect anyone to read it in its entirety.  As opposed to just giving you the highlights, I’m going to list some highlights that I think might surprise you – or at least the ones that surprised me.  Here you go:

·      This year’s report reflected an increase in purchases for Millennials (age 36 and under) in suburban locations and for detached single-family homes.  Only 15% bought in the city compared to 21% just 2 years ago (they are having kids and moving out of the city).
·      Generation X (37 to 51 years old) buys the biggest and most expensive homes of all groups (I would have thought it to be the Young Boomers (52 to 61 age range))
·      Older Boomers (age 62 to 70) typically move the longest distance at a median of 25 miles (I assumed the older group was less likely to move far from their current place, but I guess they like warmer climates)
·      The older the buyer, the more likely that the purchase will be new construction (seems backwards)
·      88% of all homebuyers finance their purchase (higher than I thought)
·      Millennials still site student loan debt as a major factor in not buying.  But for those that have student loans, it’s the Gen Xers that have the higher student loan average balance.
·      16% of younger and older Boomers have student loan debt (average of $10,000 per)
·      Gen X buyers have delayed buying longer than Millennials (primarily due to debt or lack of equity in a home needing to be sold to be able to purchase) – hopefully Gen X sellers will fuel the market as they will now have been able to rebuild equity lost
·      Young boomers’ purchase of multi-generational homes jumped 20% in 2016 (due to their adult children needing a place to stay)
·      Roughly 90% of Gen X and Millennials use a Realtor for both buying and selling – ironically, both of these generations are the most likely to go on-line to do their searches
·      The most common reason to buy, for all purchasers under the age of 61, was simply the desire to own their own home
·      76% of all sellers were married couples