How Your Generation Impacts How You Do Real Estate
When considering buying or selling a house, one of the first questions that come to mind is either “What do I want in a house?” or “What do buyers want in my house?” It can be hard to differentiate between wants and needs in real estate, the answer to either question may have a connection to generational real estate trends.
Baby Boomers
If you are a member of the Baby Boomer generation and are wondering where you fit in the real estate market, it may surprise you to know that the Millennials have recently surpassed Baby Boomers as America’s largest generation, and this demographic change is very much reflected in the share of the real estate market which they hold. With many Boomers still in the workforce, the real estate trends for this group have been split in two: younger Boomers (born between 1956 and 1964) and older Boomers (born between 1946 and 1955). Together, they have a market share of between 15 and 16 percent of the market respectively. What makes the baby boomer generation so interesting is that they are the ones most likely to move the furthest. This means that they are more likely to consider obtaining a smaller home and relocating closer to family and friends, they are also the generation that is willing to pay for the location they want.
Generation X
Members of Generation X, are known for their work ethic and determination. But when it comes to real estate, members of Generation X are becoming well-known for their likeliness to move in order to obtain a larger home for their growing families. When selling, this means playing up livable space in a home and demonstrating how it can accommodate an expanding and growing family. For many items to focus on are the main living spaces such as the bedrooms, kitchen, living areas, and bathrooms. Proximity to impressive schools, shopping, transportation routes, walkability and other amenities are also good qualities to play up. Members of this generation are also considered to be more likely to stay in their homes for a longer period than many of the Millennial set. This means that members of Generation X are more likely to compromise on price in order to get the right city or neighborhood.
Millennials
Members of the Millennial generation are considered by many to be more likely to look for a bargain, affordability trumping almost every other housing need. This is one of the primary reasons that so many Millennials are moving to the suburbs. When selling, this means that appealing to the Millennial set that will be looking for walkability, recreational opportunities, employment, and public transit. In terms of buying real estate, especially for the first time, Millennials are more likely to compromise on the size and age of a home as opposed to the price. This provides a great opportunity to build equity through a renovation before moving on to a larger home in the future.