What generation are you in? Where do you fit in the world of real estate buying and selling?
Although researchers agree on the approximate birth dates for different generations, there is frequent debate on the exact beginning and end dates that make up the generational groups. The following information is meant to provide a snapshot of the buying and selling populations, according the National Association of Realtors©, “2016 Profile of Home Buyers and Sellers”. The four generations involved in the buying and selling of real estate include: The Silent Generation, Baby Boomers, Generation X and the Millennials.
The Silent Generation:
Born between the year 1925 and the mid-1940s, this group was given its name by Time magazine in an article from 1951 entitled the “The Younger Generation”. The name was intended to describe this generation’s focus on their careers rather than on activism. It is a smaller segmentation of the population because of lower birth rates during the Great Depression. Growing up in the Depression is probably a major reason this group was career oriented, as it was a necessity during that difficult financial period in American history.
Place in the real estate market: 4% of buyers and 7 % of home sellers in 2016 were over the age of 75. These numbers are probably a reflection of the high percentage of people in this group that have already downsized and are living in their final homes.
The Baby Boomers:
This generation was born after World War II approximately between the years of 1946 to 1964. The name is given because of the high birth rate resulting from soldiers coming home from the war. The exact end date of this generation is hard to tell but it is generally considered to end at some point in the mid-1960s. There are many differences of opinion about the cultural similarities of this group. Baby Boomers are often associated with wealth and a rejection of traditional values. One thing is certain though – there are a lot of them! According to the U.S. Census, there are 75.4 million Baby Boomers.
Place in the real estate market: 29% of buyers and 42% of sellers in 2016 were between the ages of 55 and 74. It is believed there will be a significant increase in the number of Baby Boomers selling in the next five to ten years.
This generation also known as Gen X is typically used to describe people born in the mid-1960s until the late 1970s and early 1980s. From a population size, this group is much smaller than the 2 generations that they are sandwiched between – Baby Boomers and the Millennials giving them the name: “the “Middle Child”. This generation has been called the “Latchkey Generation” a term used to describe kids going home from school to an empty house due to greater number of single-parent households and the larger participation of women in the workforce. They have also been called the “MTV Generation” after the popular music channel.
Place in the real estate market: 39% of buyers and 40% of sellers in 2016 were between the ages of 35 and 54. Chances are that this group will continue to upsize their houses as they are in their peak earning years.
This generation is also known as “Generation Y”. Once again, it is difficult to determine the exact starting and ending dates for this generation. Generally speaking, the Millennials were born between the early 1980s and the early 2000s. This population is very large because they are mostly children of Baby Boomers which was also a large population. Another name given to this generation is “Echo Boomers”. This group is known for using new methods of communicating due to many advances in technology. This generation has also been significantly affected by the “Great Recession” resulting in a higher rate of unemployment and later starts for their careers. According the U.S. Census, there are 83.1 million Millennials, making them the largest generation alive today.
Place in the Real Estate Market: 28% of buyers and 12% of sellers were between the ages of 18 and 34 in 2016. A whopping 61% of first-time home buyers were Millennials. Due to the size of this generation, they will be a major force in the world of real estate buying and selling.
For more information, contact:
Coldwell Banker Residential Brokerage
211 South Street
Morristown, NJ 07960
(O) 973-267-8990 x153