Home Buyers by Generation
If you are getting ready to market your home, or maybe one of your investment properties, you probably have a pretty good idea who you think your most likely buyer will be. With that in mind, it’s important to know generational buying patterns and trends to understand your target market.
Millennials: Ages 24 – 39 (1981-1996)
Although Millennials have had to undergo far more adversity when it comes to buying a home than previous generations, they still want to own a home. Millennials have comprised the majority of the buying market over the past five years, so it’s important to know their needs. Due to their financial constraints from stagnant wages, student debts, or the inability to save for a down payment, millennials usually wait longer to buy a home that will be the right fit for their lifestyle. Trends show that millennials tend to gravitate toward smaller homes with bigger backyards for pets or gardens, and smart home accommodations. Surprisingly, like the Silent generation, they also prioritize living near family and other loved ones.
Generation X: Ages 44 – 55 (1965-1980)
This generation is at the peak of their careers and family growth, they have more capital, but they are also more pressed for time.
As Gen Xers are often repeat buyers, they know exactly what they want and don’t want. They may have children at home and/or parents needing care, which may also be where their buying power comes from (for example, two houses being sold, theirs and their parents). They may be looking for larger homes with an in-law suite or two owner suites. These buyers may also want to purchase a duplex in order to open up a common wall.
Baby Boomers: Ages 56 – 74 (1946-1964)
Baby Boomers’ needs are varied as some are settled in their careers, some are almost done with their careers, and many are retired altogether. They place importance on craftsmanship, reliability and fair prices. Single women represent a large percentage of buyers in this group, due to life changes including the death of a spouse or divorce.
When making a home purchase, the top motivator for buyers 63 and older seems to be their desire to be closer to their family and friends. These buyers have adaptability in mind. They look for homes that can welcome their visitors, grandchildren, provide rental income or eventually, as they age, provide space for a caretaker.Other boomers may want low maintenance and little yard work. Some may want a second home or a rental property to hold until they are ready to retire. When marketing to Baby Boomers, it’s important to represent how adaptable the property is for these potential circumstances.
Silent Generation: Ages 75 – 92 (1928-1945)
Typically, these buyers present more emotional situations and involve family members. This generation is most likely being urged or guided by family to move to a home that is more compatible with their health issues and aging needs.
Those in the Silent Generation may be facing the sale of their long-time home to make a move into a home where aging in place is easier and more accessible. In these transactions, it may be difficult to balance the buyer’s wants and needs versus the family members’ influence. Remember these buyers are most often leaving a home full of memories as well as their network of friends and care providers. This is especially true if they are having to relocate to be closer to their immediate family. Be patient with this buyer and their family and try to ease their concerns.
Trudi
