Who are Today’s Home Buyers?*
When preparing to sell your home, it’s important to know who your target audience is and what they are looking for. The demographic of home buyers can affect their preferences and needs. Below is a breakdown of current homebuyers in the USA.
Home Buyers by Generation
Buyers in General
- First-time buyers represent 34% of all home buyers.
- 11% of buyers bought a multi-generational home.
- 31% of buyers had children under 18 living at home.
- Buyers expect to live in their homes for a median of 12 years.
Why Do Buyers Buy?
- It’s a financial and an emotional decision.
- #1 reason: desire to own a home of their own (28% of buyers)
- Need to upsize/downsize.
- Desire to be closer to family/friends.
- Life events: marriage, expanding family, contracting family, adult kids returning.
- Change in jobs/retirement.
Demographics – Married vs. Single
- 60% of buyers were married couples.
- 19% were single females.
- 9% were single males.
- 9% were unmarried couples.
- 85% of buyers bought resale homes; 15% of bought new construction. Buyers of new homes were looking to avoid renovations and problems with plumbing or electricity. Buyers of resales homes considered them a better value.
- 82% of all homes purchased were detached single-family homes.
- Most buyers bought a home within 15 miles of their previous residence.
- 87% of buyers financed their home purchase (this figure decreases as the age of the buyer increases – older buyers are more likely to use proceeds from the sale of their previous residence).
- Heating/cooling costs and windows/doors/siding were the most important environmental feature.
- Millennials make up the largest (and growing) share of home buyers at 43% - which has been true since about 2014.
- 81% of younger millennials (23-31) were first-time homebuyers; 48% of older millennials (32-41) were first-time homebuyers.
- 54% of younger millennials said their primary reason for buying a home was their desire to own a home of their own.
- 35% of older millennials said their primary reason for buying a home was their desire to own a home of their own; 19% said they wanted a larger home.
- Younger baby boomers (57-66) said their primary reasons for purchasing a home were: desire to be closer to family and friends (17%), desire to own a home of their own (13%), and retirement (13%)
- Older baby boomers (67-75) said their primary reasons for purchasing a home were: desire to be closer to family and friends (24%), retirement (15%), and desire for a smaller home (10%).
- Baby Boomers were more likely to downsize in both size and price, but more than 70% still purchased single family homes.
- The median distance from previous residence to new residence was 28 miles for younger baby boomers and 35 miles for older baby boomers – more than any other age group.
*Source: 2022 National Association of Realtors Home Buyer & Seller Generations Trends Report.