Do you know your generations? It’s important to have an idea of the buying and selling habits of each generation.
Having an idea of the difference between Generation Y, Generation X, and Baby Boomers and their views on homeownership allows you to use the proper tools and be in the right frame of mind when working with different age groups.
Knowing the important facts will help you understand each age group better and provide the right services based on their differences. Here are a few important things to keep in mind according to NAR’s Home Buyer and Seller Generational Trends.
GENERATION Y.
Born 1980-1995. Ages 33 and younger
- Largest share of home buyers at 31% and smallest share of home sellers at 12%
- 76% are first-time buyers
- 74% say biggest benefit from an agent is helping them understand the process
- 17% had to stall home sale because their home was worth less than their mortgage
GENERATION X.
Born 1965-1979. Ages 34-48.
- Second largest share of home buyers at 30% and largest share of home sellers at 29%
- Highest income earners at $98,200 and largest share of married couples at 72%; most have children under 18 in the home at 67%
- 15% had a difficult time saving for a downpayment – among them 46% said credit card debt and 35% said student loan debt delayed saving
- 19% had to stall home sale because their home was worth less than their mortgage
YOUNGER BOOMERS.
Born 1955-1964. Ages 49 to 58
- 16% of recent home buyers amd 21% of recent home sellers
- 22% purchased a multi-generational home. Most common reasons: children over 18 moving back into home (38%), cost savings (18%), and health/caretaking of aging parents (15%)
- 26% own more than one home—including investment properties and vacation homes
- 10% had to stall home sale because their home was worth less than their mortgage
- Most likely than other generations to bring up agent commission rate or fee for negotiation
OLDER BOOMERS.
Born 1946-1954, Ages 59 to 67
- 14% of recent home buyers
- 21% purchase a new home to avoid renovations or problems with plumbing and electricity and for amenities of new construction
- 27% own more than one home—including investment properties and vacation homes
- Most common reason to sell home: want to move closer to friends and family, home is too large, and retirement
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