According to the National Association of Realtors, around 38% of today’s home buyers are Gen X, more commonly known as Millennials.
As a result, it’s easy to see the many ways that this generation is actively reshaping the housing market in its entirety. As a whole, this up and coming generation is changing the real estate transaction process.
While it may seem like a dramatic statement, it’s really not that hard to imagine. Gen X is 72.1 million strong, and as they’re coming of age, they’re entering the housing market. Their presence alone is enough to shake up the norms.
In the current data-driven paradigm, consumers create change simply by doing (or not doing) something. As homebuyers, Gen X brings their own perspectives and ideas to the table, and that shapes their deal. Being almost half of the buyer population, their demands and preferences obviously carry significant weight.
I’ve been following the impact that different generations are having on the real estate market. After all, they are the future – so we all need to keep up, because Gen X does things a little differently.
Beyond the basic points that we all are familiar with, such as the fact that Gen X wants homes with technology, they desire sustainable communities, and they are patient when it comes to finding their dream homes.
But, here are some up-to-the-minute trends I’ve been tracking:
Greater Suburban Appeal
Now that the coronavirus has completely changed the flows of work, life, and everything in between; it’s surely changing the way people view urban areas. As social distancing measures, teleworking, and stay at home orders have us all accustomed to being more isolated than ever before, the hustle and bustle of city life isn’t going to look so glamorous post-pandemic.
With public transportation and various structural issues, working Gen X-ers have new concerns about commuting to the office – if they even have to. Popular urban areas are not delivering the lifestyle that prospective tenants or new homeowners were expecting. It’s likely that any new resident of NYC didn’t anticipate that they’d be sitting in their apartments, not able to go meet their friends at their favorite bar.
Recreating the Definition of Home
People are spending more time at home than they have in years. These past few socially-distant months of doing literally everything at home is redefining what the word ‘home’ means.
Even the biggest social butterflies stayed inside for months. Now, the requirements for home are much more all-encompassing. Gen X will be looking for homes that completely facilitate their lifestyle goals. From work to relaxation, the property will be expected to do it all.
New Urban Concerns
A Pew Research survey noted that in 2016, 48% of Gen X women already had children. Now, in 2020, Gen X families dominate the home buying market, and back-to-school concerns are influencing their decisions.
As COVID-19 remains on the radar, the school commute is being analyzed in a completely new way. In a suburban area, it’s easier for parents to drop their kids off at school. Comparatively, the urban lifestyle makes this a hassle, and it’s more convenient for Gen X parents to send their kids on a school bus.
But, the school bus isn’t so appealing during a pandemic. This is yet another reason why Gen X buying patterns will likely shift towards suburban locations.
What impact do you think this will have on real estate?