A few key trends may hold the answers and provide some important insights for your business. For one, both millennials and baby boomers could be your biggest buyers. Interesting trends are taking shape across homebuyers. No longer is the sweet spot only in the middle-aged target. As more 25- to 34-year-olds enter the job market and start earning higher salaries, millennials are poised to take the housing market by storm. On the other hand, baby boomers are not staying put like they used to. They are carving out unique empty nester lifestyles in new and different places.
First, here’s what you should know about millennials:
Many of those born between 1980 and the early 1990s are expected to buy their first home this year—and likely not a traditional starter home. As a result of paid-off loans and higher-paying jobs, this group is opting for more than a condo or townhome. In fact, this group may be in a position to spend more on a home than you might think.
According to a Fortune.com article, generally speaking, today, “the typical earner can expect to see her wages grow the most between the ages of 25 and 35, by an average 38 percent.” This positive income momentum can make a millennial buyer more confident.
Their geographic preference? Midwestern suburbs and medium-sized cities. As it happens, suburban and smaller city living appeals to baby boomers and millennials alike. Millennials, especially, are focused on safety, privacy and more space.
So what about folks at the other end of the life-stage spectrum? Here’s what you should know about baby boomers:
This group, the oldest of whom are entering their late 60s, are also looking to move as they reach their retirement years, according to Jonathan Smoke, former chief economist for realtor.com®.
Baby boomers’ participation in the housing market has dwindled over the last several years, as many have been reluctant to sell. Instead, they have opted to wait for their homes to recover the value they lost due to the downturn in the housing market.
Interestingly, many boomers are opting not to move to traditional retirement hot spots like Arizona and Florida, and are choosing instead to move closer to family or in proximity to their favorite activities, such as music, theater and nature—so it’s become even more individualized, and more important than ever to know your boomer buyers.
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