There’s no denying the differences between generations. From the clothes we wear to the food we eat, to our spending habits, while seemingly trivial, these decisions can have a huge hand in the way we live our lives.
In this article, we explore the different ways these behaviors inform the purchasing habits of different generations, particularly in buying homes, and the numerous factors that play a part in their choices.
Baby Boomers – Born between 1946 and 1964
This group is most likely to be retired or approaching retirement. As such, they often prioritize homes that are located in suburbs or subdivisions and that are close to their family and friends.
According to a 2019 survey, Baby Boomers account for 18 percent of the real estate consumer market. The majority of this cohort have previously owned a home or rented a house/apartment, and they heavily consider the quality of the neighborhood, heating and cooling costs, and proximity to family when choosing a home.
Generation X – Born between 1965 and 1979
This group is mainly motivated by the desire to provide a home for their family. They represent 24 percent of the real estate consumer market. Almost half of them have previously owned a home or rented an apartment/house.
Due to their family-oriented priorities, 56 percent look for houses located in suburbs and subdivisions, while only 13 percent prefer homes in urban areas or city centers. This group bases their decisions on the quality of neighborhood, affordability, proximity to job, and accessibility to quality schools.
Generation Y – Born between 1980 and 1989
For older millennials, buying a home is driven by the need for a safe place to start a family. This group dominates the real estate consumer market, making up 26 percent of the lot—a little more than half of this group are first-time home buyers.
Generation Y home buyers prioritize factors like quality of the neighborhood and commuting costs. They’ve been in the job market a while and may want to expand their assets. Other factors, like the desire for a larger space and job relocation, may motivate them as well.
Younger Generation Y – Born between 1990 and 1999
A majority of this young age cohort—a whopping 86 percent, in fact—are first-time home buyers. This isn’t surprising, considering the group has been part of the workforce for the least amount of years compared to other groups.
Younger Gen-Y homebuyers account for only 11 percent of the real estate consumer market.
While people from this age group don’t typically purchase homes at this stage, 60 percent credit their desire to own a home at a young age as the main motivator behind their decision to purchase a home.
Unlike previous generations, their decisions are largely affected by affordability more than any other generation, as well as commuting costs, and quality of the neighborhood.
While the differences may be clear, there are also a few similarities that are shared across generations. According to the 2019 survey, most buyers look for properties online and consider finding the right home the most difficult step in the entire process.
Across the board, they all also value the expertise and guidance that real estate agents provide in searching for the perfect home.
However your age, family, or career place shape your home-buying decisions, you’re likely to find your particular needs answered in an Avida home. When you live in a property by Avida, you’ll come home to a place that both offers what you want at your current stage in life and promises to develop as your needs evolve.