As of recently, there are five generations participating the housing market, causing an array of challenges for homeowners interested in selling. Each generation varies in their buying habits and requires different amenities to the home they purchase. Let’s take a look at how each generation contributes to the real estate market.
Generation Z, Born 1997 –2012
This generation has just recently started participating in shopping for new homes. Unfortunately for them, many are still unable to afford homes due to the rapid increase in home values over the last few years. This does not deter their motivation however – according to the National Association of Realtors, 97% of Generation Z believe that they will own a home in the future. They do however appear to be at a disadvantage financially – 47% of those that have acquired a home were only able to put under $10,000 down. This generation, although ambitious on the amenities they would like, are limited due to their financial restrictions.
Millennials, Born 1981 – 1996
Millennials are leading in the market for homebuying – by the end of 2018, they were responsible for 45% of all new mortgages. It is estimated that 20% of Millennial’s in 2018 purchased a home for over $300,000. These individuals are at an age in which they are starting families and have an established career. This means that they are seeking out homes that have specific amenities to match their long-term needs. They are in fact more willing to buy run down homes and take on the DIY projects the homes require – as first-time home buyers, they are making educated decisions to benefit their future.
Generation X, Born 1965 – 1980
Those in this generation are generally at the point in which they are upgrading their home – they are at the peak of their earning years and are willing to spend more on their homes in order to upsize for their growing families. The challenge they have recently been faced with however is a lack of inventory in their purchasing options – they are more particular in what they want and are willing to hold out for the home that fits them best. Some of the amenities that they are searching for may include larger backyards, outstanding views, upgraded interiors, and eco-friendly additions, to name a few.
Baby Boomers, Born 1946 – 1964
Today, Baby Boomers own a majority of the homes in the United States. Those that are buying now are often selling their current home and moving into a smaller, more manageable one. No longer are they seeking the extra space for hosting guests, but instead they are looking for less maintenance so that they can enjoy their retirement years. Since many of them are retiring at this time, they are looking for homes that have specific upgrades that can help them save on their monthly bills, such as homes that have particular upgrades that reduce cooling and heating costs (double pane windows and doors or a new HVAC system) – if they are on a set income, this can be extremely crucial to their lifestyle. In addition, many members of this generation are starting to move out of cities and enjoy the quietness of the neighboring suburb.
Silent Generation, Born 1928 – 1945
Those that are over 74 represent the smallest community of recent homebuyers, embodying only 7% in 2018. They are generally already established in their retirement and have no interest in making the hassle of a big move. However, those that do decide to move do so primarily to be closer to family, friends, or relatives, or move into a senior housing community. Unfortunately, many health issues can impact one’s ability to live alone, so unless the home is fully equipped with the most recent technologies to ensure they are safe, this generation is seeking assistance in their living situation.
Who Will Buy Your Home?
Each generation represents a different selling opportunity, so preparing your home for a sale can be challenging. You will need to assess the type of community you live in and determine who will be most likely to make an offer. Review what amenities your home has to offer and identify if there are specific upgrades you can undertake to make your home more appealing to the market leading generations.
However, this can be tricky to balance. The wrong changes to the house can actually have a negative impact on your opportunities. There is one way around this dilemma – you can sell your home to an all-cash buyer. You can avoid the hassle of upgrades and marketing, and sell your home within days of your initial inquiry.
The benefits of selling to an all-cash buyer are numerous – to learn more about this unique opportunity, contact us here at Gulf State Homebuyers and we can provide you with a free consultation.