Who is buying homes in 2020? What kinds of homes are folks buying, and how are they going about doing so? These are just a few of the many questions answered in the National Association of Realtors’ (NAR) comprehensive and fascinating Home Buyers and Sellers Generational Trends Report. Every year since 2013, NAR has issued this study to provide “insights into differences and similarities across generations of home buyers and sellers.”
While the focus may be on what distinguishes Millennial home buyers from Boomers, and Gen Xers from Gen Yers, it goes far beyond that analysis to provide a holistic snapshot on what makes all buyers tick in 2020. It is worth a read, but for those who may not have the time or inclination to go through 143 pages of statistics, charts, and discussions about America’s home purchasers, here are a few highlights.
Who Is Buying Homes In 2020?
- First-time buyers made up 33 percent of all home buyers.
- Buyers 30 to 39 (Older Gen Y/Millennials) remain the largest generational group of buyers at 25 percent. They are followed by buyers 40 to 54 (Gen Xers), who bought 23 percent of all homes.
- Sixty-one percent of recent buyers were married couples, 17 percent were single women, nine percent were single men, and nine percent were unmarried couples and partners.
- Thirty-five percent of all home buyers had children under 18 living at home.
Why Are People Buying Homes In 2020?
- The desire to own a home of one’s own was by far the most significant reason motivating buyers, with 29 percent of all buyers saying that was the reason for their purchase. That figure goes up to 60 percent for buyers 22-29
- For older Americans above the age of 55, a desire to be closer to family and friends, downsizing to a smaller home, and retirement generally were the primary reasons they bought a house.
- “It was just the right time” was the reason half of buyers said they bought a home at this particular point in time.
What Types of Homes Are People Buying In 2020?
- Thirteen percent of homes purchased were new, while 87 percent were previously owned.
- Detached single-family homes were by far the most popular purchase at 83 percent.
- The typical home recently purchased was 1,850 square feet, had three bedrooms and two bathrooms, and was built in 1990.
- Buyers 22 to 29 purchased townhomes at higher shares than any other age group.
- For new home buyers, 39 percent said that it was important to avoid renovations or problems with plumbing or electricity, while 32 percent emphasized the ability to choose and customize design features.
- Half of all homes purchased were in a suburb or subdivision.
How Are People Buying Homes In 2020?
- Among all generations of home buyers, the first step taken in the home search process was to look for properties online.
- Buyers typically searched for ten weeks and looked at a median of nine homes.
- For 55 percent of homebuyers, the most difficult step in the home buying process was finding the right property.
- Eighty-nine percent of all buyers purchased their home through an agent, as did 92 percent of buyers 39 years and younger.
- When choosing an agent to work with, working with an agent that was honest and trustworthy was the most important factor for buyers.
No matter who you are, why you’re buying, and what kind of home you’re looking for in Chicago, the real estate experts at Z Chicago can help you find the perfect home, in the best neighborhood, at the right price. Contact us today to learn how we can help you.