Gen-Xers take lead in home buying

A number of real estate professionals will mark 2005 as one of their top producing years…thanks in large part to Generation X. The housing sector in general is flourishing through job growth, continuing low interest rates, and price gains in some hot markets.

Four years ago, the median age for homebuyers was 36. This year the median age is 31. According to this profile, Generation Xers represent 49% of the home buying market. A majority of them are first time homebuyers with many of them owning a second home for investment purposes. One interesting finding is that the younger generation is more focused on purchasing second homes as investments, giving them both rental income and diversity in their portfolio. The other 51% of homebuyers generally purchase second homes for vacation retreats and eventually their future retirement home. These buyers are traditionally over 46 years of age.

Why is the younger generation now interested in home buying?

The number one reason given was that they just want to own their own home rather than pay rent or live with their parents. Today’s younger buyer generally has a higher income and they are also taking advantage of the many different alternative financing options.