According to a recent report from the National Association of Realtors® on generational trends in real estate, millennials make up the largest share of home buyers (for the third consecutive year). To no surprise, at 35%, buyers 35 years and younger (median age of 30 years old) continue to be the largest generational group of home buyers.
Yes, the stats show us that Millennials have the buying power right now, but, every generation is making real estate buying and selling decisions. That’s why it’s important to understand all of the generational trends in real estate when trying to sell your home.
Meet the generational trends in real estate:
At 85 million strong, millennials are called the smartest and most educated generation by some. Generation Y now makes up the largest segment of the buyer market (even ahead of Gen X); they’re professionals who want to be taken seriously. 76% are first time homebuyers simply because they desire to own a home and are looking for convenience to their job and a quality neighborhood.
Is it the lure of the ‘burbs? Maybe so. Apparently millennials are leaving the fast-paced, big-city-living far behind and looking to buy a home in the suburbs. Considering nearly two-thirds of millennial buyers are married and half have children living with them, they’re looking for more space at an affordable price and prefer homes that need little or no work. Time to get your home turn-key ready.
They expect lightning fast responses (thanks, internet) and simple transactions, like texting instead of talking on the phone, for example. Nearly all believe that owning a home is a good financial investment; however, the only thing holding them back from saving for a down payment is recent debt like student loans, car loans or credit card debts.
- Median Age: 30
- Average Income: $77,400
- Size: 1,720 sq. ft
- Price: $187,400
Gen X’ers are your average home buyer in the real estate market and represent 26% of buyers. Most have children under the age of 18 in the home and their driving factors to buy are based on neighborhood influencers like school districts and quality of life.
You can count on them to do their research, so have it ready for them. For example, make sure you have your home professionally photographed so it shows well online. But once they are certain that your home is the right choice, they’ll make their decision quickly and efficiently.
- Median Age: 42
- Average Income: $104,700
- Size: 2,200 sq. ft
- Price: $263,200
Young Baby Boomers
Baby boomers are considered one of the richest generations in history and make up 40% of the population. Though some embrace technology, others may not be so tech-savvy and prefer to communicate in person rather than through email. They’re a busy group, so save them some time with your transactions and keep things simple.
Young baby boomers make up about 16% of homebuyers; they’re making a move mainly due to job relocation, downsizing or a better neighborhood. Remember to highlight the personality and conveniences of your town in addition to the features of your house.
- Median Age: 56
- Average Income: $100,200
- Size: 1,960 sq. ft
- Price: $239,000
Older Baby Boomers
Older boomers make up about 14% of home buyers and 27% own more than one home, including investment properties and vacation homes. They are a generation focused on being in close proximity to family and friends as well as conveniences like shopping and markets. Although the older boomers are trying to downsize, they plan on living in their home for a while (about 20 years).
- Median Age: 65
- Average Income: $81,600
- Size: 1,950 sq. ft
- Price: $220,000
The Silent Generation, also known as the “matures,” makes up 9% of homebuyers… and 16% of home sellers. Most likely, this generation has bought a home before and now comfort, affordability and convenience are key requirements in their new home search. They’re looking for quality and expect a formal and respectful (old-fashioned) approach with communications. Patience is the key to their heart.
- Median Age: 74
- Average Income: $67,100
- Size: 1,800 sq. ft
- Price: $209,100
Now that you understand how all the generational trends in real estate think and what they’re looking for, you can fine tune your approach to reach them at the moment they’re ready to buy!