Gen X buyers, people born between 1965 – 1979, account for 24% of home purchases, and are the most affluent and second largest buying force in the currently operating in the real estate market. If you’re planning to sell your home in the near future, make sure you get a free copy of my Seller’S Guide, which is packed full of helpful tip!
Rise of the Multigenerational Home
One of the most notable trends in Gen X buying data is the fact that many Gen X buyers find themselves sandwiched in the middle of caring for both their aging parents and young children and/or adult children at the same time. Of the Gen X buyers in the real estate market, 1 in 6, or, 16%, purchase a multi-generational home. Interest in multigenerational homes is increasing because people in this age bracket are caring for their aging parents, as well as experiencing their adult children moving back home. Twenty eight percent of Gen X buyers who buy a multigenerational home do so because they are caring for an aging parent, 25% do so because adult children are moving back home, and 27% because adult children never left home. The phenomena of adult children moving back home is not unique to Gen Xers—they’re referred to as “boomerang kids”. This is also major factor for Baby Boomers who buy multigenerational homes, too. The high cost of rent and lack of affordable housing inventory sends adult children back home, either out of necessity or in an attempt to save money, and as a result the trend of increasing interest in multigenerational homes seems to be here to stay.
In the Gen X Pocketbook
Gen X buyers are in their peak earning years and have the highest median income of all buyer age brackets, with a median on $111,100 in 2017, according to National Association of Realtors data, and correspondingly, as a generational group, Gen Xers purchase the largest and most expensive homes and are interested in luxury upgrades and extra space. Most Gen X buyers are experienced in home buying and selling so their taste in what is desirable may be more demanding than younger generations.
What does this mean to you, as a seller? In order to connect with the Gen X demographic, and tap into their buying power, sellers may need to make an investment in improving their home before it goes on the market. Many Gen Xers are not interested in fixer-uppers, rather they want a move-in ready home that meets their needs without a lot of work on their part to get it there. If your home is one that will likely appeal to buyers in the Gen X demographic, you should ensure the interior and exterior are in close to perfect condition. Like many Millennials, Gen Xers interest in eco-friendly features in increasing, although it is not as much of a determining factor for this age group. For more information about eco-friendly home features, check out this website.
Who is Gen X?
According to the National Association of Realtors 2019 Generational Trends Report, Gen X buyers are made up of 65% married couples, 17% single women, 9% single men, 8% unmarried couples and 2% other. Fifty six percent of Gen X buyers have children under the age of 18 living with them in their household.
How do Gen Xers Shop for Homes?
When shopping for a new home, Gen X buyers are more likely than any other age group to begin their hunt online with 47% looking online for properties for sale. Gen Xers search for their new home for about 10 weeks, which is average across age brackets, but they contact a real estate agent for assistance sooner than almost everyone else. What does this mean for you as a seller? Make sure you hire a real estate agent who is going to make your home standout from the crowd online, and one who is a full-time agent and who is well-connected in his or her local real estate association in order for you to know you home is being shown by other agents working with Gen X buyers. If you’re interested in even more trends data, you can see NAR’s report here.