In 2019, three generations of homebuyers are ruling the housing market: Baby Boomers, Generation X, and Generation Y. Experienced real estate professionals understand how generational differences play a significant role in home buying trends. By understanding the preferences of each generation of homebuyers, realtors can better tailor their services to meet each of their clients needs. For instance, older home buyers, such as baby boomers born between 1944 and 1964 are known for downsizing to smaller homes to create easier lifestyles for themselves. The younger generation of home buyers born between 1965 – 1979, known as Millennials, tend to scale up in home size as they jump from one home to the next.
Keep reading for a brief overview of the different generations of homebuyers today.
(Preface: While the following points are noteworthy trends, it is essential to remember that every homebuyer is different and these generalizations do not apply to everyone.)
For a long time, Baby Boomers comprised a considerable portion of the housing market in the United States. Now, Millenials have overtaken Baby Boomers. However, this does not mean they are not still actively purchasing homes in 2019.
What realtors should know about Baby Boomers
Baby Boomers want low-maintenance homes
To be considered a Baby Boomer, you need to between the ages of 55 and 75 years old. Many Baby Boomers are now retired and do not want to spend their time keeping up with difficult chores. This is why Baby Boomers are seeking low-maintenance homes or even communities that will provide maintenance services to them.
Baby Boomers prioritize location
As is the case of every generation, location is a top priority of Baby Boomers. While they are not concerned about the quality of school districts or entertainment in the area, Baby Boomers are focused on being close to family and friends.
Baby Boomers want expert advice
One of the best ways to put your expertise on display is by writing blog articles to your company page. Members of this generation actively read articles online, and this will demonstrate to potential clients that you are a knowledgeable professional in the industry.
This generation consists of individuals in their mid-thirties through early fifties. Generation X is exceptionally active in the housing market. Because many homebuyers a part of this generation are in the thick of their careers they have the highest total income of all living generations today.
What realtors should know about Generation X
Gen X is family-focused
Since many individuals of Generation X now have children, they are concerned about school districts, whether or not a home is family-friendly, and affordability due to their other financial responsibilities.
Gen X appreciates investment opportunities
Because this Generation is fixated on the future, they tend to be more mindful of the investment potential of homes more so than the other two generations on this list.
Gen X wants functionality
A primary concern of Generation X homebuyers is functionality. To prove this point, consider how many members of this generation are purchasing single-level homes. This is because they do not see the need for having two floors because they only want function spaces.
Generation Y, also commonly referred to as the millennial generation, is the most educated generation in history. Millennials are also extremely tech-savvy, which makes them extremely well-researched. Millennial home buyers are heavily reliant on their mobile devices throughout most stages of the homebuying process. From researching property listings to scanning through realtor reviews, millennials use their smartphones like they are extensions of their arms. If a realtor wants to attract younger buyers, they need to focus on their online presence. This is why many realtors today use videos and professional photography because they can help to drive more traffic to their company pages.
What realtors should know about Millenials
Millennials love social media
One of the best ways to reach Millenials is through social media. Millennials are tied to their phones and check their newsfeeds several times throughout the day. Many Millennial home buyers often find home listings through real estate agents social accounts like Facebook or Instagram. This differs from the older generations of home buyers who rely on a real estate agent to find their home. If you are an agent trying to make your social media post discoverable, try using hashtags. Twitter, for instance, uses hashtags to categorize tweets to reach larger audiences.
Millennials love events
If you are looking for a way to attract millennial homebuyers to a property, consider hosting an event. Open houses are a great place to start as they are a great way to attract the younger generation of homebuyers.
Millennials want a great deal
While many millennials are still working on getting established in their careers, they have overtaken the housing market. Since Millenials are well-reached, they know a good deal when they see one. While most of Millenial home buyers are first-time homebuyers, that does not mean they aren’t knowledgeable about the market or can’t recognize when a home is overpriced.