Homeownership Demographics are Changing
While generally we think of new homebuyers as the traditional married couple with a dog and 2.2 kids, now days they just narrowly make up the majority — only 56 percent among ﬁrst-time buyers. In fact, homeownership rates among folks between ages 35 and 50 have fallen more than any other age group since the Great Recession.
Today’s home buyers span a range of social and gender ranges, from single women to unmarried couples to foreign-born and multigenerational households.
Data published in the 2015 Home Buyers and Sellers Proﬁle compiled by the National Association of Realtors (NAR), along with research on mortgage patterns among different ethnic groups by Fannie Mae, indicate consistently transforming trends in home owner demographics.
Single women now account for nearly one-sixth of all home purchasers and one out of every seven repeat homebuyers. In 1985, single women accounted for only 10 percent of buyers, increasing to 21 percent by 2005, and 9 percent of single men becoming home buyers. It’s anticipated that by 2024 there will be as many single-person households in the U.S. as there are family households.
Economic need has compelled a surge in multigenerational living. Thirteen percent of buyers are shopping for houses that can manage needs where grandparents, parents and grandchildren all inhabit the same property or help ﬁnance the purchase. Among all home-owning households with a mortgage, 14 percent are multigenerational.
The generation of roughly 75 million Americans between ages 18 and 34 (millennials), have been buying homes later in life. Partly because of student debt and lower credit scores – but millennials are starting to get their ﬁnances in order and enter the market in greater numbers.
“Millennials seem to understand the value of homeownership as an investment, although they are waiting longer, they are skipping starter homes and are going straight to the larger “Dream Home” purchases” says Dean Weissman, Managing Broker / Owner at The Platinum Group, Realtors
One out of every 14 home purchases are now made by unmarried couples and among ﬁrst-time buyers the share is nearly double that. In the meantime, the share of homebuyers aged 55 and over has grown to 27.8 percent in 2017 from just 16.1 percent in 1981.
Each of these growing groups of buyers comes with their own unique challenges. As the needs of folks buying homes continues to change, the type of homes being sold and built will continue to evolve as well. “Age demographics change the platform and amenities needed and the builders should be looking at solutions for different age tiers to maximize their home building product and match the different demands” says Weissman.
More than ever, when dealing with buying or selling a property, it’s critical to have all of the relevant information before making an educated decision. Realtors have the best access to loads of hard to
obtain information, as well as the most powerful tools available for home buying and selling. “Although the internet provides lots of information, it is the interpretation of the information from your Real Estate Professional that can provide a winning strategy in our ever-changing market” Weissman adds.
With experience in a multitude of situations and challenges, a good Realtor with knowledge and insight of the local market, is sure to ﬁnd the best answers for every situation.
Local experts, The Platinum Group Realtors, are unsurpassed in delivering positive results to buyers and sellers in the Pikes Peak region. Their team of dedicated and experienced Realtors are well established, experienced and steadfast providing Platinum service and Platinum results.
For a no-obligation consultation, call 719-536-4326 or visit PlatinumHomesSales.com.