Home Buying Trends and Statistics for 2014

Buying a home – especially your first home – is a uniquely exciting, creative, and whirlwind process. And when you’re in the middle of it, it helps to know that there are other people going through the exact same thing. We’ve compiled some information about just who is getting into the real estate game right now – and how they’re going about it.

Homebuyer_BreakdownWhat’s my age again? Average home buyer ages in 2013

According to the National Association of Realtors, the country’s young guns are jumping into the home buying scene in droves this year.

  • Generation X (individuals born between 1960 and 1980) made up 31 percent of the home buyers in 2013.
  • Generation Y (individuals born between 1980 and the early 2000’s) accounted for 28 percent
  • Younger Baby Boomers (individuals born between 1955 and 1964) accounted for 18 percent
  • Older Baby Boomers (individuals born between 1946 and 1964) were responsible for 14 percent of housing sales

When people get into retirement age, home buying numbers begin to drop significantly.

  • Ever heard of the Silent Generation (individuals born between 1925 and 1942)? This group made up 10 percent of recent housing purchases.
  • The G.I. Generation (individuals who grew up during the Great Depression) made up the smallest percentage at less than 1 percent of recent buyers.

Based on these numbers, Generation X and Y made up the bulk of the housing market in 2013. It makes sense, when you think about it – these folks have generally acquired enough income to buy rather than rent, and they’re more likely to have growing families that require a bigger living space.

Income levels among home buyers in 2013

In spite of a not-so-great job market, Generations X and Y were able to make ends meet and jump into (or stay in) the real estate scene.

  • Median income for Generation Y home buyers – *$66,200
  • Median income for Generation X home buyers – *$93,100

*These numbers are lower in the Oklahoma Housing Market

Home buying preferences of Generation X and Y Generations X and Y are often grouped together; we talk about them like they’re completely different, but the groups are very similar in some aspects, especially compared to the much older and younger age groups. Here are some of their overall housing preferences from 2013. 2013-home-buyers

  • Energy Efficient homes: Younger buyers look for eco-friendly properties that include energy-efficient appliances, windows and a well-insulated home.
  • Flexible space: Another aspect young buyers appreciate in a home is multi-use areas. Buyers want space that could be a nursery, man cave, craft room, home gym – whatever their hobby or need happens to be at any given stage.
  • Tech-friendly homes: Homes with state-of-the-art home security systems or other technologically advanced features are hugely popular with younger buyers.
  • Reduced square footage: The days of the McMansion are behind us. Today’s young buyers only want to pay for the space they will be using, leading to an upward trend in smaller home sales. Plus, smaller homes tend to make for higher energy efficiency – and buyers love that!
  • Open floor plans:  Another feature younger buyers love in a home is open floor plans. This means the dining room, living room and kitchen are often all in one open space. Open floor plans eliminate wasted space from interior walls and corners – they allow homeowners to utilize every aspect of their home regularly.
  • No more fixer uppers:  We’re guessing this has something to do with HGTV: in the past few years, we had seen increasing popularity with fixer-upper homes that buyers could customize and/or flip. But today’s buyers are over it – they much prefer a move-in-ready home that already includes their high-priority amenities.
  • Ranch style homes: In general, younger buyers are requesting ranch style homes. We don’t mean the shag carpeted, popcorn ceiling 70s throwback: a modern ranch style is a single family, one-story detached home. These models tend to the have open floor plans and are generally designed for efficiency and functionality.

generation-x-home-buyer Today’s home buyers also do their own research

Generations X and Y use technology all the time, so it only makes sense that they would use technology to search for homes and research what they want. Young buyers are usually very in-the-know about local home prices and already know which homes they want to visit.

Why people are buying now

Younger home buyers – generally, new home buyers – reported that their main motivation for buying a home was simply to own their own place. The fact that interest rates are the lowest they have been in 60 years is a huge incentive as well. Repeat buyers or individuals who are older and buying their second or third home, on the other hand, said that they wanted a place with higher square footage. A small percentage of buyers said that they moved into a new home as a result of moving for a job. Hear from our homeowners why they chose Home Creations.

We’re in this together

Buying a home can be a very intimidating prospect – but at Home Creations, we’re here to help. Whether you are a completely “typical” home buyer for 2014 or have a totally different situation, you’re among friends. We’ll facilitate your whole buying and moving process by giving you access to tons of helpful information and helping you get to know your community and neighbors.