Lots of good information was recently provided through a new study on generational trends when it comes to home buying by the National Association of Realtors. We’ll provide you with a few of the highlights, but it’s also well-worth clicking over and reading the entire report here.
Millennials, or those born between 1980 and 1995, are increasingly becoming a big part of the U.S. housing market. In fact, they made up the largest portion of recent home buyers at 31%. Generation X, or those born between 1965 and 1979, made up 30% of recent homebuyers.
Lawrence Yun, chief economist of the National Association of Realtors, pointed out Milliennials are entering the prime period when people typically buy their first homes.
“Given that Millennials are the largest generation in history after the Baby Boomers, it means there is a potential for strong underlying demand. Moreover, their aspiration and the long-term investment aspect to owning a home remain solid among young people.”
Millennialls were found to be the most optimistic in the study when it comes to home buying as an investment. However, Yun pointed out while the demand appears there when it comes to Millennials, they still face many hurdles to actually buying a home.
“The challenges of tight credit, limited inventory, eroding affordability and high debt loads have limited the capacity of young people to own,” Yun said.
Much more information on buying trends among generational lines is provided in the study. This includes location and lifestyle preferences, as well as the median size and price of homes bought by each generation.
To be successful in this business you have to know your customers, which makes this study a very useful tool for any real estate professional moving forward. Identifying your clients needs and properly dealing with them will go a long way towards that end.