The key characteristics and drivers of the four main generational groups, Baby Boomers, Gen X, Millennial, and Gen Z:
Boomer housing market trends:
Ages: 60–78
Born: 1946–1964
Homebuyer market share: 39%
Baby boomers are the dominant group in the homebuying market, largely because they have more equity built up in their existing homes and are less sensitive to higher mortgage rates. Boomers are more likely to purchase to be closer to friends and family, including their adult children and grandchildren. They also like to be near convenience amenities, such as recreation, retail and healthcare.
Key characteristics: This generation has a reputation for its discipline and strong work ethic. Today’s boomers are healthier and more active than their parents’ generation and many choose to work beyond the typical retirement age.
Motivation: Although this group of buyers is motivated by various reasons, a common theme is that many are in transition. Some are retiring or at a stage where they simply want a more maintenance-free lifestyle – less grass mowing and snow shoveling. According to homeowner.com, many also look at this purchase as their last one and are choosing homes that allow them to age in place. As such, they are interested in simpler floor plans and more single-level living.
Gen X housing market trends:
Ages: 44–59
Born: 1965–1980
Homebuyer market share: 24%
Gen Xers experienced the 1980s recession, the dot-com crash of 2000 and the Great Recession of 2008, which shook their confidence in job and financial security and made them more cautious about home purchasing decisions.
Key characteristics: The “latchkey” generation of Xers are known for being independent, resourceful and entrepreneurial. According to the National Association of Realtors (NAR), this group remains the highest-earning homebuyer group, with a median income of $114,300 in 2021.
Motivation: Compared to other age groups, this group is more likely to purchase for the desire to be closer to a job/school/transit or for a job relocation or move. According to NAR, nearly three-fourths of Gen Xers prefer a detached single-family house, a higher percentage than any other age group.
Millennial housing market trends:
Ages: 28–43
Born: 1981–1996
Homebuyer market share: 28%
Although nearly half of millennials now own homes, many who haven’t yet purchased a home believe homeownership is increasingly out of reach. According to a Bankrate Financial Security Survey, personal affordability issues keep 78% of aspiring homeowner millennials from purchasing a home. In comparison, 59% said that the current housing market/economic conditions are holding them back.
Key characteristics: This generation is confident, tech-savvy and values work/life balance. According to NAR, elder millennials had one of the highest shares of married couples, at 66%. Younger millennials are the most educated age group, with 80% holding at least an associate degree, which bodes well for their future purchasing power.
Motivation: Millennials comprise the biggest group of first-time buyers. Some key drivers behind the decision to buy are marriage, kids and a desire to have more room for pets. According to NAR, when considering location, convenience to job is more important to this group than other generational groups.
Gen Z housing market trends:
Ages: 11–26
Born: 1997–2012
Homebuyer market share: 4%
Given their youth, it’s no surprise that this group is just starting to dip their toes in the water of homeownership.
According to NAR, Gen Zers purchase the smallest homes across different groups of buyers: a median 1,480 square feet. 30% of Gen Z home buyers move directly from a family member’s home into homeownership.
Key characteristics: This group has grown up with smartphones and social media. Most use their phones to research purchases before they buy, and they are more receptive to ads on social media versus email or online advertising. Gen Z also is more racially and ethnically diverse than any other generation.
Motivation: Gen Z homebuyers see the value of owning versus renting, and are motivated by the chance to invest in their future. According to Bankrate, 63% of Gen Z respondents associated owning a home with the “American Dream.” Their home search often focuses on finding a location close to friends and family.
Leverage the expertise of an experienced real estate attorney.
An experienced real estate attorney can provide much needed guidance as you wend your way through the complicated world of real estate purchases and sales. No matter which generation you’re in, an experienced real estate attorney can help you successfully navigate today’s unique real estate market. An experienced real estate attorney can help you understand the challenges inherent in today’s real estate transactions, achieve your goals and objectives and protect your investment.
It’s important to remember that people are all unique. Likewise, all real estate transactions are unique. An experienced real estate attorney can provide invaluable guidance to help you successfully navigate your unique real estate transaction, and protect your investment.
Despite digital technology, real estate agents, and real estate attorneys remain the top home-buying and selling resources for all generations, according to NAR. Buyers rely on guidance from a real estate professional to help them find a home that fits their budget and needs and help negotiate terms and purchase price. Despite higher mortgage costs, most homebuyers also continue to use a mortgage to help finance their home purchase.
Whether you’re retired with a fixed pension, a cautious Gen Xer, a confident Millennial or a Gen Z buyer who is still building credit, working with an experienced real estate attorney early in the process can help you set realistic goals and protect what may be the biggest investment of your lifetime.
An experienced attorney can insure you’re buying what you think you’re buying and protect you against unexpected and unwelcome costs and expenses at closing and afterward. My expertise can help you achieve the best results for your unique real estate transaction. For more information, please contact me at: 203-544-9945 or Beth@eedwardslaw.com.
Reprinted from
US Bank
The Front Door
David Stambone
U.S. Bank
Mortgage Sales Supervisor
NMLS #120211
