The number of Generation X home buyers is increasing thanks to an improving economy, multiple years of strong job growth and a notable increase in home values.
This is according to the National Association of Realtors® 2017 Home Buyer and Seller Generational Trends study, which evaluates the generational differences of recent home buyers and sellers.
What’s been holding Gen X households back?
Unlike Millennials, Gen Xers have higher student loan debt, are more likely to have previously sold a distressed property, and are the generation most likely to have owed more on their mortgage than their house was worth.
“Gen X sellers’ median tenure in their previous home was 10 years, which puts many of them selling a property they bought right around the time home values were on the precipice of declining,” said Lawrence Yun, NAR’s chief economist.
“Fortunately, the much stronger job market and 41 percent cumulative rise in home prices since 2011 have helped a growing number build enough equity to finally sell and trade up to a larger home.”
“Fortunately, the much stronger job market and 41 percent cumulative rise in home prices since 2011 have helped a growing number build enough equity to finally sell and trade up to a larger home. More Gen X sellers are expected this year and are definitely needed to ease the inventory shortages in much of the country.”
The uptick in purchases from Gen X buyers this year (28 percent) was the highest since 2014 and up from 26 percent in 2016.
Millennials were the largest group of recent buyers for the fourth consecutive year (34 percent), but their overall share was down slightly from a year ago (35 percent). Baby boomers were 30 percent of buyers, and the Silent Generation made up 8 percent. Click here to read the article and the take the home ownership quiz.