Buying a home in your 20s or 30s is a far different experience than buying a home when you’re nearing or in retirement. Understanding the risks and opportunities you face at different stages in life can help you make smart homebuying decisions.
The National Association of REALTORS® 2021 Home Buyers and Sellers Generational Trends Report takes a deep dive into generational trends in homebuying. Every situation is unique, but there are some common experiences among age cohorts. Here are some trend highlights and a few takeaways for millennials, Gen Xers and baby boomers.
Millennials (Ages 22-40)
Millennials make up the largest share of homebuyers at 37%.* They’re often first-time buyers and more likely to purchase in urban areas than other age groups. Coming up with cash for a down payment is often a major hurdle for this age group. Younger millennials reported living with their parents, relatives or friends before purchasing a home. Doing so helped them save money for a down payment and allowed extra time to search for homes in their price range.
Tips to consider:
- Save for a down payment. Find out how much you’ll need to save for a down payment, and start saving toward your goal. Maximize your savings by opening a savings account designated as your down payment fund.
- Do your research. Working with an experienced real estate agent can give you an edge when buying a home. Ask about first-time homebuyer programs and other strategies to help you succeed.
Gen Xers (Ages 41-55)
Generation X is the highest-earning age group of homebuyers. They bought the largest homes in size compared to other generations and were most likely to purchase a multi-generational home. Extended families are choosing to live together to save money and spend more time with family — during the pandemic and beyond.
Members of Gen X are often juggling many responsibilities and face challenges related to the timing of buying a home. Their home search may be limited by location factors (e.g., school districts and proximity to work) as well as home features (extra space for a growing family and/or extended family living together). As a result, it may be challenging to find a home that fits their budget and family needs.
Tips to consider:
- Set realistic expectations. Decide what’s most important to you and where you can compromise or reset your expectations on pricing, location or home features if needed.
- Be patient. If the timing isn’t right, be prepared to step back and wait for the next opportunity to come along. Consider making home improvements to increase the functionality and enjoyment of your existing home.
Baby Boomers (Ages 56-74)
Baby boomers are downsizing and moving into smaller homes as they grow older, and many are navigating the process of buying and selling at the same time. Baby boomers accounted for 32% of homebuyers and 43% of home sellers.
Baby boomers purchased homes for a variety of reasons, often driven by the desire to move to a better location and be closer to friends and family. Older baby boomers were more likely than other age groups to purchase a newly built home. They also value neighborhoods close to shopping areas and health care facilities.
Tips to consider:
- Be flexible. Having flexibility with move-in dates and other details can help strengthen your side of the negotiations when buying and/or selling your home.
- Plan for the future. Take a closer look at home-tech devices that can make life easier at home, whether you’re purchasing a newly built home or making upgrades to an older home.
Mortgage Services Designed for You
Whatever stage of life you’re in, we can help you navigate the next steps in buying a home. Connect with our mortgage bankers at Amegy Bank to learn more or apply for a home loan,