When someone buys a home, they aren’t just buying the house, they’re buying the neighborhood as well. But what exactly are potential home buyers looking for in a new community?
According to the National Association of Realtors’ 2016 “Home Buyers and Sellers Generation Trends” report, the home buyer’s age impacts the type of neighborhood they want to call home.
A person’s stage of life heavily influences the type of location in which he or she wants to live and what he or she considers important. A young, childless couple is going to be looking in different neighborhoods than a family of four or a couple searching for their future retirement home.
Here are the features each generation said they considered important when choosing a potential neighborhood:
Millennial home buyers (35 years and younger):
For younger buyers, being close to work is the most important factor when choosing a neighborhood in which to live. Millennials want a short commute, even if it means living on a smaller lot. The price of the homes is also important; specifically, millennials are looking for affordable homes. Fifty percent of millennials said the overall affordability of homes was an important factor in choosing a neighborhood.
Gen X home buyers (ages 36 to 50):
When Gen-Xers look for a neighborhood, they are the most likely to concentrate on school districts. When children are in the picture, they tend to become the driving force behind major decisions. Thirty-four percent of Gen-Xers said convenience to schools was the deciding factor when choosing a neighborhood.
Young boomer home buyers (ages 51 to 60):
Young boomers were the most likely to say the look of a neighborhood was an important factor in deciding where to live. These buyers aren’t looking for a starter home, they’re looking for a dream home, and with that comes a beautiful neighborhood. Twenty-eight percent of young boomers said neighborhood design was a significant factor in picking a place to live – more than any other generation.
Older boomer home buyers (ages 61 to 69):
Twenty-four percent of older boomers say they’re looking for a neighborhood that’s convenient to entertainment and leisure activities. These buyers tend to be considering retirement, and are looking for a neighborhood where they can see themselves spending their extra free time. They want to move to a community with lots to do, and they don’t want to have to go far to do it.
Silent generation home buyers (ages 70 to 90):
Home buyers who are either near or in retirement care about being close to family. Fifty percent of the Silent Generation who participated in the survey said convenience to friends and family was the factor most likely to influence where they want to live.
Want to know more about generational trends in real estate? Join Realtors and Home Builders on Wednesday, Aug. 10 for their annual joint Economic Update Luncheon featuring Jessica Lautz, NAR’s managing director of survey research & communications. Additional details and ticket information are available at www.gcar.net or www.hbagc.net. We will not be able to accommodate walk-ins. Advanced ticket purchase required.
The Greater Chattanooga Association of Realtors is The Voice of Real Estate in Greater Chattanooga. The Association is a regional organization with more than 1,700 members, and is one of more than 1,400 local boards and associations of Realtors nationwide that comprise the National Association of Realtors. The Greater Chattanooga Association of Realtors services Hamilton and Sequatchie counties in southeast Tennessee, and Catoosa, Dade, and Walker counties in northwest Georgia. For more information, visit www.gcar.net.