Curious about the “who, how, where, and why” of home buyers? Speculations run rampant, but the National Association of Realtors collected the facts in the Home Buyer and Seller Generational Trend Report 2016. Derived from over 6,400 responses to a 128-question survey of recent home buyers, the whopping 140-page report contains the answers to real estate questions you didn’t even know you had.
As far as broad demographics are concerned, buyers 35 years old and younger – “millennials” – made up the largest generational group of those who purchased houses between July 2014 and June 2015. 67% of this group were first-time homeowners. Interestingly, the second largest demographic group of recent buyers, after families, was composed of single women.
The most commonly cited reason for the purchase among buyers under 50 was simply the desire to own a home. The median expected length of tenure in these dwellings is 14 years.
Suburban areas were the most common location of purchased homes for all age groups, followed by small towns. The top factors considered regarding neighborhood choice were perceived quality of the neighborhood, convenience to job, and overall affordability.
35% of buyers didn’t compromise their desires when selecting their homes. 21% of younger buyers compromised size, and this ratio decreased with age. Other top compromises were price (mostly among older buyers with more financial flexibility) and condition.
As a testament to the pervasive power of technology, it should be noted that 92% of buyers utilized the internet during their search. Still, the vast majority (over 85% in every age group) reached out to real estate agents for assistance.
Check out the infographic from the National Association of Realtors below.