Highlights The Characteristics of the Home Buyer
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 the Home Buyer” from the trends report for the 12-month period ending June 2014:
- Gen Y comprised the largest share of home buyers at 32%, which is larger than the combined Baby Boomers. Younger Boomers made up 16% and Older Boomers comprised 15% of recent home buyers. Generation X ranked at 27% and the Silent Generation had the smallest share of home buyers at 10%.
- Gen Y had the largest share of first-time home buyers at 68%. The share of first-time home buyers decreases as age increases.
- 13% of all buyers purchased a multi-generational home, meaning, one in which the home consists of adult children over the age of 18, and/or grandparents residing in the home. This was most prevalent among Young Boomers aged 50-59, at 21%. The most common reason of this living arrangement among Young Boomers was children over the age of 18 moving back into the house (37%), followed by health/care-taking of aging parents (21%).
- The prior living arrangement varied greatly for home buyers. Among those who are 33 or younger, 59% had previously rented an apartment. Those who were 50 years of age and older, more than 50% had owned their previous residence.
- 39% of Gen Y buyers primarily purchased a home just for the desire to own a home of their own. Gen X placed a high importance on owning a home of their own but many needed to move for a change in a family situation or job-related relocation. Older Boomers were more likely to move for retirement, to be closer to friends and family and the desire for a smaller home. Younger Boomers were more likely to move for a job-related relocation and also the desire to downsize.
- As age increased among recent home buyers, the rate of owning more than one home also increased.
We hope you found this post to be informative and interesting… Watch for our next BLOG POST on April 9th which will cover generational trends from the 2015 report highlighting the “Characteristics of Homes Purchased”. 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!