boomers do not want to go to ‘senior centers,’ so places are the limited number of listings on the market they can afford,
renaming their facilities ‘active adult centers.’ Many retirees which is creating stark competition, speedy price growth and
are hoping to walk to the grocery store, entertainment, the need to save more in order to buy. These challenging
and other activities - not get into their cars and drive to be market conditions have caused—and will continue to
active. Walkable neighborhoods, urban centers, and active cause—many aspiring millennial buyers to continue renting
living communities are appealing to this generation. You unless more Gen Xers decide to sell, and entry-level home
must keep in mind that retiring boomers are a generation construction picks up significantly.” Millennials are buying
apart from anything the country has ever experienced homes with higher values, but the same square footage:
before. They are, after all, the gray-haired versions of the $220,000 for 1,800 square feet, versus last year’s $205,000
long-haired kids whose mantras in the 60s were “Sex, Drugs for the same size, according to the study. Additionally, 52%
and Rock ‘n Roll” and “Never Trust Anyone Over 30.” of the millennials in the study have at least one child—an
indicator of the likelihood of a move—and another 52%
In the National Association of REALTORS® survey, the #1 purchased in the suburbs. 85% purchased a single-family
reason Boomers ages 55 to 64 gave for moving was to be home, while just 2% went with a condominium.
closer to family and friends (18%), followed by retirement
(15%), and job relocation (15%). Another popular option was Which markets are most popular for millennial homebuyers?
buying smaller second homes in vacation areas assuming Various reports charting potential millennial homeownership
those will be their eventual retirement destinations. often come up with different results for which cities top the
Ultimately the three most important factors in deciding list depending on the data used, but there is a similarity:
where this generation retires, according to the ‘Choose millennials can’t afford to buy in big cities. The fundamentals
Tallahassee Poll,’ were climate, cost of housing, and quality are simple: a combination of jobs and adequate inventory at
of health care. the starter level result in more millennials feeling ready for
homeownership. The millennial homeownership journey is
Generation X (ages 36-50) consists of the most racially and just beginning in many ways. Already we’ve seen millennial
ethnically diverse population who are in their peak earning energy transform some towns. With interest rates rising,
years. Their incomes are the highest among all generations inventory rates still dwindling, and prices creeping up in many
and buyer types. Gen X-ers are most likely to have children markets, for some buyers the dream of homeownership may
under the age of 18 living in the home and are also the most require a move. Millennials are close to family and friends as
likely to be married. They have the highest median priced well, and prefer to live near them—an attribute in common
homes of all other buyers and buy the largest homes in with other generations.
median square footage and bedrooms. Generation X is most
likely to choose neighborhoods based on the convenience At the end of the day, all generations enlisted a real estate
to their jobs as well as the quality and convenience of the professional for their transaction, according to studies by
school district. NAR. 90% of millennials are most likely to purchase through
a Realtor®, with 75% believing they can educate them
And finally, the entitled avocado toast loving Millennials about the process. 90% of millennials are most likely to list
(ages 24-35). This generation is impressing on the market with a Realtor® as well, and at least 84% of every other
more than any other generation today with Millennials generation partnered with a Realtor®.
accounting for 36% of purchases, ahead of Boomers at 32%,
Generation X-ers at 26%, and the Silent Generation at 6%. NAR
President
Elizabeth
Mendenhall
summarized
“REALTORS® throughout the country have noticed both the generational selling best when she said, “especially in
notable upturn in buyer interest from young adults over the today’s fast-moving housing market, consumers of all ages
past year, as well as mounting frustration once they begin want a Realtor® to guide them through the exhilarating, yet
actively searching for a home to buy,” says Lawrence Yun, nerve-wracking experience of buying or selling a home.”
chief economist at NAR, of the study. “Prices keep rising for The question is - can YOU guide consumers of all ages?
RPCRA.ORG | SEP/OCT 2018
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