The National Association of Realtors published the Home Buyers and Sellers Generational Trends Report in 2013 which helped provide valuable insights into similarities and differences across generations of home sellers and buyers. The annual Profile of Home Buyers and Sellers was leveraged to extract home seller and buyer data.
The largest share of home buyers is millennials aged 22 to 30 (Younger Millennials) and those aged 31 to 40 (Older Millennials). They currently hold up to 37% of the market share for home buyers. Younger Millennials take up 14% of the market share, whereas, Older Millennials cover 23% of the market share. Millennials have taken over the market since 2014.
Gen Xers still made 24% of the overall home purchases. They continue to make the most money and boast a median income of $113,300 as reported back in 2019. Younger Baby Boomers aged 56 to 65 and Older Baby Boomers aged 66 to 74 were separated into two different categories in the report. These two categories had showed different demographics and buying behavior. Younger Baby Boomers made 18% of the recent buys, whereas, Older Baby Boomers made 14% of the recent buys.
The Silent Generation aged 75 to 95 had the smallest share in the market for recent buys. It turns out that they are not making as many purchases as most people might be misled into believing. The oldest generations prefer not to make real estate purchases as much as they used to back in the day. Instead, they stick to the properties they hold and have a rather diversified income portfolio. It cares to show that The Silent Generation has already made a fortune and holds plenty of real estate. Hence, they no longer need to make as much purchase.
If there is one thing that was observed after reviewing the report, it is the fact that all generations of buyers used a real estate agent or broker to help them find a property to purchase. It clearly explains why real estate agents are in such high demand. Anyone who is a realtor has nothing to worry about as the real estate market only shows signs of growth. Besides, the real estate industry has seen massive growth ever since the coronavirus pandemic broke out. More people are opting for traditional investment that includes purchasing real estate to hedge risk. With commissions as high as 5%, realtors are one of the highest paid professions.
Once you have finished reading this post, you will know everything there is to know about the latest home buyers and sellers generational trends. There is a lot that you can learn from the report. By understanding these trends, you can take your real estate business to the next level. The report provides information for everyone.