consumers in their 20s are more likely to buy a home at a younger age than their older
brothers and sisters as well as their baby boomer parents, and are not necessarily
waiting for marriage or even a long-term relationship before becoming homeowners.
“The next generation of homeowners is beginning to exert its influence on the housing
market,” said Thomas M. Stevens, National Association of Realtors president from
Vienna, Virginia, and senior vice president of NRT Inc. “Many younger buyers have seen
the wealth-building effects of homeownership in their parents and understand the value
of housing as a good long-term investment.”
The motivations, interests, and home buying approach of some younger buyers are
chronicled in “Tomorrow’s Buyers: Who They Are and What They Want” in the
September 2006 issue of Realtor Magazine. The report integrates NAR research with the
experiences and attitudes of real-life buyers who represent different demographic
populations, putting a human face on statistical trends.
The percentage of first-time homebuyers under age 25 has been increasing in response
to historically low interest rates and continued confidence in the long-term housing
market, from 11% in 2001 to 14% in 2005, according to the 2005 NAR Profile of Home
Buyers and Sellers. “Owning a home is no more burdensome than renting, and in the
long term, it’s the better investment,” said Kristen Carreira, a 26-year-old homeowner in
Pittsburgh.
Carreira is also part of a trend in single female home buyers. While married couples are
still the norm, they represent a smaller share of the home buying public than they did just
10 years ago, from 70% of home buyers in 1995 to 61%, says NAR. During that same
time, the proportion of single women buying homes has increased, from 14% in 1995 to
21%.
Younger buyers are also likely to use technology and the Internet in their home buying
search. In 2005, according to NAR research, the median age of buyers who used the
Internet to search for homes was 11 years younger than those who did not, at 38 and
49, respectively.
“Realtors have adapted to meet the needs of this growing population of young home
buyers,” said Stevens. “More than one-third of NAR’s 1.3 million Realtor members have
had special training and lots of experience in buyer representation and technology. That
expertise is reflected in special designations and certifications, such as the Accredited
Buyer Representative (ABR) designation and e-PRO certification. A commitment to
understanding the demands of this changing marketplace is just one more way Realtors
add value to the real estate transaction.”
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