A new, comprehensive report is showing a dramatic change of face in the home buying market. This analysis is reporting that throughout the U.S., three specific groups of people are now buying the most homes. Those groups are: 1) women, 2) people without children and, 3) older people. These three groups are essentially dominating the real estate market in 2018.
One generation ago, during the early 1980’s, only 18.9% of women were homebuyers. In 2017, women made up 46.4% of the homebuyers. In 2017, almost 20% of the women homebuyers were single. Compared to the early 1980s - that number was only 9.1%.
The second group of people without children rose to 21.2% in 2017. That number was 15.3% in the early 1980s. This number may be more prominent as other studies show most Millennials are delaying starting a family and are renting longer instead of buying a home. Having children has been and continues to be a main reason the younger generation decides to buy a home. Homebuyers with children fell to 40.7%. In the early 1980s that number was 51.4%.
The last group of people - the older generation who are buying homes has been steadily increasing. These studies show households over the age of 55 increased to 27.8% in 2017, a rise from the early 1980s of 16.1%. This may be partly attributed to senior citizens selling their larger homes and buying smaller homes or buying homes to near their adult children or in a warmer climate. A generation ago, these older homeowners would buy their home, raise a family and stay in their larger homes until they passed away.
What a difference a generation makes. In the early 1980s, the largest share of homebuyers was under the age of 35 making up 52% of all homes bought. Last year that number fell to 33.7% - the lowest ever recorded.
Adding to this mix is that more people would rather rent their homes than at any point since the 1960s. The homeownership rate in the U.S. rose slightly last year since reaching a 50-year low in 2016. The homeownership is near a generational low of 63.7%. More people have chosen to rent rather than own.
In another survey, it was shown this group of people would rather rent than go through a grueling home buying process or are unable to come up with a large down payment. Many Millennials would rather rent to be able to travel and have other experiences than to spend money on a home. Another factor that came into play is that people move around frequently due to job changes. The age of having the same job and living in the same home for the rest of your life is all but over.
If you are interesting in buying or selling or home in this real estate market, it is best you consult with a real estate attorney or real estate agent. Keith Gantenbein, of Gantenbein Law Firm, is both an experienced Denver real estate attorney and licensed Denver, Colorado real estate agent. For more information, or to schedule your consult, call 303-618-2122, or visit www.gantenbeinlaw.com.