Not to be overshadowed by the recent focus on millennial and boomer homebuyers, Generation Xers are making something of a buying comeback in today’s real estate market. Here’s why this trend is significant.
Members of Generation X (ages 37 – 51) have been somewhat sidelined when it comes to coverage of the social and financial impacts of the different generations. But recent studies are finding that those who came of age in the ’80s and ’90s represent a higher percentage of new home buyers than in years past and are gaining a noted foothold in the real estate market.
Coming of age in the real estate market
According to HousingWire.com and Realtor.com, millennials are the generation buying the largest share of property at 35%. Following right behind, however, are members of Gen X, accounting for 28% of home purchases — up from 26% last year.
Forbes reports that the increase in home purchases by Generation X is especially significant in that this sector has the highest average amount of student debt among the generations — $30,000 — compared to an average balance of $25,000 for millennials.
HousingWire also reports that student loans are a contributing factor as to why Gen Xers delay buying a home longer than their millennial counterparts.
What are they looking for?
According to HousingWire, the following factors might influence the real estate comeback among Gen Xers. These factors may also help determine the kinds of homes these buyers are looking for.
Members of Gen X are typically:
• In their peak earning years
• The generation making the most money, with a median annual income of $106,600
• More likely to have families
• The largest generation with kids still living at home
So while they may have taken longer to purchase homes, the generation in between the famed boomers and millennials is on its way to a real estate comeback. With more income and more children living at home, Generation X may be looking for bigger homes at a higher price point to accommodate their family and lifestyle needs.
Although millennials and boomers continue to generate coverage as buyers and sellers in the real estate market, the middle generation, Gen X, is coming into its own and is at its peak as more members join the ranks of American homeowners.
To help attract this growing segment of homebuyers, reach out to your American Home Shield® account executive for promotional materials such as door hangers, flyers, postcards and more. These tools can provide buyers and sellers with information on the benefits of a home warranty from AHS®. You can also obtain these items from the OnMark Pro website.