Highlights The Characteristics of Homes Purchased
The National Association of REALTORS conducts annual studies to amass data to compile and complete their yearly Home Buyer and Seller Generational Trends Reports. But first, it is important to have a clear picture of who makes up each of the generations within this report. The following generational definitions are based on a report published in the REALTOR University’s Center for Real Estate Studies. The splitting of the younger and older baby boomer age group is based on research from the Pew Research Center, Generations 2010.
Millennials/Generation Y: Born 1980-2000
Generation X: Born 1965-1979
Younger Baby Boomers: Born 1955-1964
Older Baby Boomers: Born 1946-1954
Silent Generation: Born 1925-1945
The following highlights the “Characteristics of Homes Purchased” from the trends report for the 12-month period ending June 2014:
- At least 80% of buyers, 59 or younger, bought a detached single family home. However, for buyers over the age of 59, it was increasingly common for them to purchase townhomes and condos.
- 13% of buyers over the age of 49 purchased a home in senior-related housing for either themselves or others.
- Gen Y and Gen X tended to stay close to their previous residence, often moving within 10 miles. Older Boomers tended to move the farthest distance of 30 miles and the Silent Generation tended to move 20 miles from their previous home.
- Younger buyers tended to purchase older homes and were more likely to purchase previously-owned homes because the home was most often a better price and better overall value. Older Boomers and the Silent Generation were more likely than any other generation to purchase a new home, most often doing so to avoid renovations or maintenance problems and also for the amenities in new home construction communities.
- Showing strong connection to the buyer’s generation were neighborhood factors. More than any other generation, Gen Y placed the highest preference on convenience to employment as well as affordability. For Gen X, the quality of school districts and convenience to schools was most often of top priority. Older Boomer and the Silent Generation placed higher priority on convenience to friends, family and health facilities.
- Younger buyers placed high importance on commuting costs, while older buyers placed higher importance on energy efficiency lighting and landscaping for energy conservation.
- The older the home buyer, the fewer compromises they tended to make with the home purchase. 48% of the Silent Generation made no compromises on their home purchase. Younger buyers tended to make sacrifices on the price, size and condition of the home purchased.
- After finding the home they wanted, Gen Y and Gen X expect to live in the home for 10 years before relocating. Younger Boomers and the Silent Generation expect to live in the home for 15 years and Older Boomers plan to stay in the home for 20 years. It should be noted that expected tenure is generally longer than actual tenure.
We hope you found this post to be informative and interesting… Watch for our next BLOG POST on April 23rd which will cover more generational trends from the 2015 report highlighting “The Home Search Process”. To learn more about Tampa Bay area homes for sale in Spring Hill and Brooksville, located in Hernando County, Florida, visit us @ GailSellsFloridaHomes.com
Until then… it’s all about YOU!