Aug 12, 2021
Realtors: Catering To Various Demographics of Homeowners
Age demographics play an important role in what one’s priorities are during the home search process. Savvy realtors can assist their clients in this process better by understanding what the needs and pain points are for each generation as it applies to different types of housing. Here is a look at the three predominant generations and what their home shopping needs are.
Baby Boomers (57-75 years of age)
This generation is looking for a home that will transition with their needs into retirement, which is known as “aging in place.” A spec home is perfect for that. Because they’re new, spec homes require less maintenance, a must for Baby Boomers who may not have the physical ability to care for a maintenance-heavy home. These homes also include upgraded appliances and technology that allow for control of the home environment. In a 2021 Home Buyers and Sellers Generational Trends Report by the National Association of Realtors® Research Group, “buyers aged 56 to 65 and 22 to 30 were most likely to purchase a new home for the amenities of new construction communities.” These amenities allow Baby Boomers to enjoy their retirement and maintain their health, not a needy home.
Some Baby Boomers alternately purchase a resale home for the joy of maintaining and renovating it. If they have the physical ability to perform maintenance tasks, they often enjoy doing so. According to a 2019 survey from Chase Home Lending and Pulsenomics, “of the 76 percent of Baby Boomers that own a home, 88 percent are looking to renovate in the next three years.” Another appeal to a resale home is that they may be located in communities or cities with other residents of a similar age group, such as in Sun City, Arizona.
Gen X (41-56 years of age)
Gen Xers bridge a wide generational span of those who have teens or have kids that are already out of the house. Spec homes provide this generation with a great transition home that evolves with them through these phases. For parents with teens, a spec home allows parents to spend time with their kids instead of worrying about their home. Empty nesters can enjoy a home that fits their new lifestyle, with less space or maintenance that a home with children may have. Spec homes may also provide empty nesters with a newfound community or hobbies to immerse themselves in.
Gen Xers who would prefer a resale home may enjoy the newfound projects that renovation gives them. With the children out of the house already, an older home gives empty nesters the chance to renovate a home their way and transition into that next stage of life.
Millennials (24-40 years of age)
Millennials have long been chronicled as having a difficult time entering the housing market, making their home purchases one of great significance. Much like their compatriots in the Baby Boomer generation, some Millennials may not want to deal with the large task of maintenance and renovation that a resale home would require. For this reason, move-in ready spec homes are often perfect for Millennial buyers. The appliances and technology are often upgraded, which will appeal to Millennials who love technology and creature comforts. Spec homes also provide a sense of community, as they are often located in large cities with vibrant entertainment scenes and local amenities.
Millennials that love to DIY and who have ‘dream home’ Pinterest boards may be more drawn to resale homes. Purchasing an older home is a way for Millennials to enter a tough housing market and more than three quarters of them said in Bank of America Research’s survey that they would likely purchase a fixer-upper over a new home. While older homes may cost a bit more money upfront due to renovations and inspections, these houses are worth it to bring their vision to life.
REA Scoop is a desktop and mobile app for realtors and homeowners dedicated to new build and spec homes in Arizona. Realtors can search for available spec homes on the market suitable for potential clients of all generations, or homebuyers can find a move-in ready home that fits their needs. For more information, contact us today or download the app on Google Play or the App Store.