Friday, September 30, 2016

Gen X and Homebuying

Many Realtors are focusing on the Millennials right now as history has told us that they are at the 1st home buying age.  Problem is the trend has broken.  Many are holding off on the purchase for a few reasons. The obvious is price, they can not afford it, mobility (many like being able to move around on short notice), recent history (they saw their parents lose their homes), and more.

One group close in age is Gen-X.  They were born between 1960 and 1980, they are 26 percent of recent buyers, in their peak income-making years, highest median priced home of all other buyers, and the largest homes in median square footage and number of bedrooms.

While both Gen-X and Millennials both do want to own homes, the Gen-X group is currently at the age of significant life changes.  The changes, marriage, children, job stability... are triggers for the purchase.  This differs from previous generations where a home purchase was looked at as an investment that you wanted to buy as soon as you were able.

I guess the U.S. could have used some GAP insurance for this slow down.  The past simply followed the cycle.  Times have changed, a new cycle has begun and it can not be relied upon.  Yes, they are buying, but there is no sense of urgency.

This post was created with information from the article written by Meredith Dunn, Research Communications Manager, NATIONAL ASSOCIATION OF REALTORS®.  The original story may be found @ Power Broker Report.

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