As we mentioned in the first entry in our “A Guide to the 2017 Buyer” series – which covered Millennials – the question “What does this year’s buyer look like?” is particularly pressing this year.
It’s pressing because we start 2017 by inaugurating a new president that promises, for better or worse, to govern in a manner decidedly different from his predecessors – which could mean a decidedly different housing market.
In a recent survey, realtor.com attempted to gauge the buying market to better understand what is driving demand; what buyers are looking for in a home; where they are looking; and myriad other considerations that go into making that ultimate purchase. And then they organized their results by generation (i.e., Millennials, Generation X, Generation Jones, Baby Boomers and The Silent Generation).
Generation X hits their stride
In this entry, we look at Generation X (ages 35 to 44).
As our table below illustrates, Generation X buyers are still family oriented, like Millennials (and all other generations), but they’ve gotten to a point of stability where concerns like privacy, investment and physical comforts hold significant weight in their ultimate decision of when, where and what to purchase.
Over the next 12 months, real estate professionals should expect a wave of Generation X move-up buyers to start exploring homeownership. However, it may come much sooner, as the majority of Generation Xers considering a purchase plan to do so within the next three months.
Goals of Buying
Family |
22.05 |
Privacy |
21.19 |
Financial investment |
13.08 |
Physical comforts |
9.97 |
Stability |
9.15 |
|
*Based on a 100-point scale |
Motivations for Buying
Tired of current home |
31% |
Change in family circumstances |
21% |
Favorable home prices |
19% |
Rising rents |
18% |
Increase in family size |
17% |
Time Frame for Purchases
1-3 months |
27% |
10-12 months |
22% |
4-6 months |
18% |
13-18 months |
8% |
Within 1 month |
7% |
Most Preferred Purchases
Larger yard |
12.46 |
Proximity to good schools |
10.41 |
More living space |
9.48 |
Quality of construction |
9.32 |
Safer neighborhood |
7.66 |
|
*Based on a 100-point scale |
Location Preference
Outlying suburbs |
27% |
Suburbs (closer to urban core) |
26% |
Rural area |
15% |
Small town |
12% |
No preference |
10% |
Urban area |
10% |
Property Type Preference
Single-family home |
63% |
Townhouse/Rowhouse |
22% |
Multifamily |
8% |
Condo/apartment |
4% |
Mobile |
4% |
Impediments to Purchase
Just starting to explore |
38% |
Can’t find home in budget |
29% |
Haven’t found a house that meets needs |
25% |
Can’t afford downpayment |
19% |
Haven’t decided on a neighborhood |
18% |