“Who are the 2016 home buyers?”
The 2016 housing market is expected to be moderate and a solid growth. The new construction market will see more significant gains in the coming year as new home starts increase 12 percent year over year and new home sales grow 16 percent year over year. This year; total sales will be driven by three specific home buyers – older millennials (25-34 years old), younger gen X’ers (35-44 years old), and retirees (65-74 years old), according to the NAHB.
Millennials: They are expected to make up 30% of the home buying demographic in 2016. This will be driven by them seeking increasing income, millennials will seek out homes that meet the needs of their growing family. They will be emphasizing their search on quality, safe neighborhoods, and shorter commutes. According to realtor.com®’s proprietary research.
Young generation X’ers: Accounting for 20% of home purchases in 2015, buyers between the ages of 35-44 will be back in the market again likely making up the second largest population of buyers in 2016. These buyers have made strides to make a strong come back from the financial crisis. More than two-thirds of the buyers in this age group already own a home but they will now be moving out of that starter home into a larger home or more desirable neighborhood.
Individuals or couples looking to relocate or retire: This group age is 65-74 and is expected to make up the third largest home buyers in 2016. They will be selling their current home in an efforts to downsize and lower their cost of living. They will likely put their home up for sale at the start of March or April, and will want to make a new home purchase following the sale of their old. This age category has a very strong preference for newly constructed homes based on the ability to customize.