When it comes to house size and type, homebuyers and sellers share similarities. (Picture this: a detached single-family, between 1,850 and 1,900 square feet, with two bathrooms and three bedrooms.)
Across age groups, however, how they buy and list varies—sometimes in surprising ways. In a newly released report, the National Association of REALTORS® assessed both from generation to generation, finding parallels, but also clear nuances.
Among both millennials and The Silent Generation, for example, a common determining factor for neighborhood selection is convenience to family and friends—higher in priority than schools or walkability. If buying a multigenerational property, both have matching motivators, as well: to accommodate aging parents.
“The Silent Generation—older Americans who are typically grandparents and great-grandparents—for years have prioritized living near family and other loved ones,” Lawrence Yun, chief economist at NAR, says, “but it was surprising to see younger millennials with home-buying preferences and ideals similar to older segments of the population.”
The comparisons don’t end there. Below, we break down each generation, based on the findings from NAR.
BY GENERATION – HOMEBUYER TRENDS
Millennials/Generation Y (Age 22-29)
- Age (Median): 27
- First-Time Homebuyer (Share): 88%
- Home Purchase Range (18% – Majority): $200,000-$249,999
- Down Payment Source (85% – Majority): “Savings”
- Household Income (17% – Majority): $100,000-$124,999
- Key Motivator (60% – Majority): “Desire to own a home of my own”
- Made Multigenerational Purchase (Share): 7%
Millennials/Generation Y (Age 30-39)
- Age (Median): 34
- First-Time Homebuyer (Share): 52%
- Home Purchase Range (16% – Majority): $500,000 or more
- Down Payment Source (72% – Majority): “Savings”
- Household Income (18% – Majority): $100,000-$124,999
- Key Motivator (40% – Majority): “Desire to own a home of my own”
- Made Multigenerational Purchase (Share): 9%
Generation X (Age 40-54)
- Age (Median): 47
- First-Time Homebuyer (Share): 23%
- Home Purchase Range (18% – Majority): $500,000 or more
- Down Payment Source (56% – Majority): “Savings”
- Household Income (16% – Majority): $100,000-$124,999
- Key Motivator (26% – Majority): “Desire to own a home of my own”
- Made Multigenerational Purchase (Share): 15%
Baby Boomers (Age 55-64)
- Age (Median): 60
- First-Time Homebuyer (Share): 23%
- Home Purchase Range (14% – Majority): $500,000 or more
- Down Payment Source (49% – Majority): “Savings”
- Household Income (13% – Majority): $100,000-$124,999
- Key Motivator (17% – Majority): “Desire to own a home of my own”
- Made Multigenerational Purchase (Share): 16%
Baby Boomers (Age 65-73)
- Age (Median): 68
- First-Time Homebuyer (Share): 6%
- Home Purchase Range (16% – Majority): $200,000-$249,999
- Down Payment Source (56% – Majority): “Proceeds from sale of primary residence”
- Household Income (13% – Majority): $200,000-$249,999
- Key Motivator (22% – Majority): “Desire to be closer to family/friends/relatives”
- Made Multigenerational Purchase (Share): 12%
The Silent Generation (Age 74-94)
- Age (Median): 77
- First-Time Homebuyer (Share): 5%
- Home Purchase Range (14% – Majority): $300,000-$349,000
- Down Payment Source (52% – Majority): “Proceeds from sale of primary residence”
- Household Income (13% – Majority): $25,000-$34,999
- Key Motivator (24% – Majority Tie): “Desire to be closer to family/friends/relatives” and “desire for smaller home”
- Made Multigenerational Purchase (Share): 18%
BY GENERATION – HOME SELLER TRENDS
Millennials/Generation Y (Age 22-29)
- Age (Median): 27
- First-Time Seller (Share): 12%
- Household Income (23% – Majority): $100,000-$124,999
- Sold For (Median): $174,500
- Tenure (48% – Majority): 2-3 years
- Key Motivator (23% – Majority): “Home is too small”
Millennials/Generation Y (Age 30-39)
- Age (Median): 35
- First-Time Seller (Share): 69%
- Household Income (19% – Majority): $100,000-$124,999
- Sold For (Median): $235,400
- Tenure (29% – Majority): 4-5 years
- Key Motivator (28% – Majority): “Home is too small”
Generation X (Age 40-54)
- Age (Median): 48
- First-Time Seller (Share): 34%
- Household Income (21% – Majority): $200,000 or more
- Sold For (Median): $289,000
- Tenure (24% – Majority): 11-15 years
- Key Motivator (21% – Majority): “Home is too small”
Baby Boomers (Age 55-64)
- Age (Median): 60
- First-Time Seller (Share): 17%
- Household Income (17% – Majority): $100,000-$124,999
- Sold For (Median): $289,000
- Tenure (27% – Majority): 21 or more years
- Key Motivator (19% – Majority): “Want to move closer to friends or family”
Baby Boomers (Age 65-73)
- Age (Median): 68
- First-Time Seller (Share): 11%
- Household Income (15% – Majority): $100,000-$124,999
- Sold For (Median): $289,000
- Tenure (35% – Majority): 21 or more years
- Key Motivator (28% – Majority): “Want to move closer to friends or family”
The Silent Generation (Age 74-94)
- Age (Median): 77
- First-Time Seller (Share): 10%
- Household Income (14% – Majority): $25,000-$34,999
- Sold For (Median): $292,200
- Tenure (44% – Majority): 21 or more years
- Key Motivator (33% – Majority): “Want to move closer to friends or family”
While each generation has its own preferences, the fact remains: we depend on REALTORS®. Age aside, 87 percent of buyers look to their REALTOR® as an “information source,” and 52 percent for assistance finding a home, the report shows. Twenty-nine percent found their home through their REALTOR®, as opposed to on the web, and, ultimately, 89 percent made their purchase through an agent or broker. On the listing side, 89 percent of homeowners sold through an agent or broker, 8 percent on their own, and 1 percent to a “home-buying company,” such as an iBuyer.
“We see buyers of all ages prefer an experienced REALTOR® or broker to assist with this major, complex transaction,” says Yun.
For more information, please visit www.nar.realtor.
Suzanne De Vita is RISMedia’s senior online editor. Email her your real estate news ideas at sdevita@rismedia.com.
