From the National Association of REALTORS® Home Buyers and Sellers Generational Trends Report
- Buyers 37 years and younger (Millennials/Gen Yers) is the largest share of home buyers at 36 percent. Sixty-five percent of these buyers were also first-time home buyers.
- Buyers 38 to 52 (Gen Xers) consists of 26 percent of recent home buyers. They are consistent with their buying trends and demographics. Notably, they are also the most racially and ethnically diverse population of home buyers, with 26 percent identifying they are a race other than White/Caucasian. Buyers 38 to 52 are in their peak earning years and thus their incomes are the highest among all generations of buyer types at $104,700. They are both the generation most likely to be married and most likely to have children under the age of 18 in their home. Their housing preferences are driven by these demographics. Buyers 38 to 52 purchase the highest median priced homes of all other buyers and buy the largest homes in median square footage. Their neighborhood choices are driven by their convenience to job, but also the quality and schools.
- Buyers 53 to 62 (Younger Baby Boomers) and buyers 63 to 71 (Older Baby Boomers) were broken into two separate categories as they have differing demographics and buying behaviors. Buyers 53 to 62 consist of 18 percent of recent buyers and buyers 63 to 71 consist of 14 percent of recent buyers. Buyers 53 to 62 have higher median household incomes and are more likely to have children under the age of 18 in their home. Buyers 53 to 62 are also the most likely to buy a multigenerational home at 20 percent. As the sandwich generation, they are equally likely to buy this type of home for both children over the age of 18 living at home and caretaking for Introduction 2018 National Association of REALTORS® Home Buyer and Seller Generational Trends aging parents. Buyers 53 to 62 buy for an array of reasons such as a jobrelocation, desire for a smaller home, and the desire to own a home of their own. Buyers 53 to 62 also project the length of time they will live in their home is the longest at 20 years. Buyers 63 to 71 are often moving due to retirement, desire to be closer to friends and family, and desire for a smaller home. Buyers 63 to 71 typically move the longest distance at a median of 30 miles and are less likely to make compromises on their home purchase.
- Buyers 72 to 92 (The Silent Generation) represents the smallest share of buyers at six percent. As most of these buyers are likely to have retired or scaled back their work demands, they have the lowest median household incomes. The primary reasons to purchase are the desire to be closer to friends and family, the desire for a smaller home, and for retirement. Buyers 72 to 92 are least likely to purchase a detached single-family home. Twenty-eight percent purchased in senior-related housing and they tend to purchase the newest homes.
- The Home Search Process
• Among nearly all generations of home buyers, the first step taken was to look online for
properties, except for buyers 72 years and older who contacted a real estate agent first.
• Buyers typically searched for 10 weeks and looked at a median of 10 homes. The length
of the home search was the longest for buyers 53 to 71 years at 10 weeks. For all other
generations, buyers searched for eight weeks. Buyers 38 to 71 viewed a median of 10
homes this year, nine homes for buyers 37 years and younger and just six homes of
buyers 72 years and older.
• When looking during the home search process, buyers 37 and younger were the most
likely generation to consider purchasing a home that was in foreclosure.
• As a result of an internet home search, buyers most often walked through the home
that they viewed online. Buyers 37 years and younger saw the exterior of homes
because of searching online for properties. The most important website feature was
photos for nine in 10 buyers under the age of 62. Virtual tours were most important to
buyers age 53 to 71 who were also moving the longest distance.
• Buyers of all generations were overall very satisfied with their home buying process.
Buyers 63 to 71 years were the most satisfied of any generation with the buying process at 93 percent.Home Buying and Real Estate Professionals
• Eighty-seven percent of all buyers purchased their home through an agent, as did 90
percent of buyers 37 years and younger and 84 percent of buyers 63 years and older.
Nine percent of buyers 72 and older purchased their homes directly from the previous
owner.
• Buyers from all generations primarily wanted their agent’s help to find the right home to purchase at 52 percent. Buyers were also looking for help to negotiate the terms of sale
and to help with price negotiations.
• Help understanding the purchase process was most beneficial to 37 years and younger
buyers at 75 percent.
• Referrals continue to be the way that most buyers find their real estate agent. Referrals
by friends, neighbors, or relatives were higher among younger buyers such as 37 years
and younger (48 percent) and 38 to 52 (39 percent) compared to older generations.
• When choosing an agent to work with, working with an agent that is honest and
trustworthy was the most important factor for buyers.
• Seven in 10 buyers interviewed only one real estate agent during their home search.
• Eighty-nine percent of buyers would use their agent again or recommend their agent to others, also consistent across all generations.
