Earlier this week we introduced our home buyer’s generation series – an outline of buyer’s characteristics depending on their age. We have identified five current generations participating in the housing market: Gen Z (born 1999 – present), Millennials (born 1980 – 1998), Gen X (born 1965 – 1979), Baby Boomers (born 1946 – 1964), and the Silent Generation (born 1925 – 1945).
If you are considering selling your current home, it is essential to understand the various factors driving these different generations when they are buying a home. They are in many different stages in life and have a wide variety of opinions on what makes a perfect home. You need to know what they are looking for in order to maximize you homes potential. We started the series with Millennials, so now it is time to move forward to Gen X.
Who are Gen X?
Currently, individuals who identify as a Gen Xer are between the age of 40 and 56. They are participating in both ends of the real estate spectrum: buying and selling. Unlike Millennials, many have already owned their first home and are in the phase of life of finding a new home that best suits their lifestyle. They make up approximately 25% of the buyers in the market, with many of them looking for larger, multi-generation adequate homes (a majority of this generation has children under the age of 18 living at home).
What characteristics in the home are they focused on?
The average Gen Xer makes over $100,000 per year so their buying preferences shift towards similar trends of older Millennials, and even into similar trends of Baby Boomers (which we will get to next week!). Since they tend to be more established financially, they tend to want more quality luxury upgrades and extra space. By the numbers, this generation is buying larger and more expensive homes than any other generation.
Gen X is highly interested in purchasing homes suitable for multiple generations. This generation is unique in its bridge like link between the largest generations. They are looking for homes that can accommodate family in many different stages of their lives. As mentioned, a majority have children still living at home who require extra space for recreation and schoolwork. Older Gen Xers may have children who are moving out of the house or going to college, but that doesn’t mean they are looking to downsize. The stage of life they are in still has the possibility of visitors, plus grand kids could be a possibility if not a reality already.
Other major factors driving their home buying decisions involve caring for relatives. Extra space or even living spaces with separate entrances are required for the care of parents and grandparents who are suffering from medical conditions or simply need extra care in old age. A significant portion of this generation simply wanted to live in a multi-generational home to spend more time with aging parents.
Outside of home ownership and family, the next biggest reason for Gen X to buy a new home is relocating for work. Knowing the job market and the largest employers in your area could be the single largest determining factor for catering the sale of your home to Generation X.
Though their reasons for purchasing a home may be varied, their picture of an ideal neighborhood is almost the same as Millennials. Family-friendly suburban communities that are in close proximity to restaurants and entertainment with a short commute top the list for Gen Xers. The homes that they are looking for are large and spacious with more luxurious amenities. Houses with at least the possibility of a beardom on the ground floor are a plus, since as we mentioned before, caring for aging parents and grandparents is a high priority.
How does this impact you, the homeowner?
To connect with this particular demographic and tap into their home buying power you will likely need to make some investments in the existing home. Generation X is not interested in the ability to improve, expand, or upgrade a home –instead, they want to purchase a home that already suits their needs. This means that to sell to this generation the home will need to be in nearly pristine condition and even staged to drive the sale. If your home has the potential to sell to Generation X, ensure that the interior and exterior have fresh paint and replace any flooring that has visible ware. Like many Millennials, Gen X considers eco-friendly a plus; however, it may not be a determining factor when considering the purchase.
Skip the sale….
Wading through all the data and trying to decide if you should target Generation X can be daunting. All of the activities associated with selling a home can create a lot of stress and anxiety, plus they are expensive –Therefore, consider selling to an all cash investor instead. We are Gulf State Homebuyers and we buy homes all-cash from homeowners just like you. We buy in the Baytown/Houston area and we offer competitive prices. Now is a great time to sell, so don’t miss out simply because prepping your home to sell is a hassle. Contact us today for your free and highly competitive, no obligation appraisal.