Members of the Silent Generation were born between 1925 and 1945. They make up 8% of recent home buyers and 24% of those purchased senior-related housing or bought to be near family or friends.
Baby Boomers were born between 1946 and 1964 and make up 33% of recent homebuyers. Depending on age, boomers show trends of purchasing senior-related housing or large, multi-generational homes to make room for parents - or millennial children returning to the nest.
Generation X, born between 1965 and 1979, is perhaps the most affected by the Great Recession. Many found their livelihoods threatened and their home values under water. 27% have student loan debt, and they are the largest generation with children living at home. On the rebound, they make up 28% of recent home buyers.
A Mar 8, 2017 article in www.realtor.com, Guess Which Generation Is Making the Biggest Comeback in Real Estate, quoted public policy professor Dowell Myers at the University of Southern California in Los Angeles. "The millennials are a sleeping giant. They should be big home buyers over the next five years as long as the credit markets are willing and the supply (of available properties) exists.”
A recovering economy positions the Millennial generation to make a major move in the housing market. Some millennials are making aggressive moves, taking advantage of house flipping. While gentrification can be a very controversial subject, it can also be a boon for those that know how to move within the market and know what neighborhoods to buy in. Many Millennials like a small-town feel, where they can walk to and from work and home; this requires very specific areas and a keen business eye. As an architecture firm, we have seen an influx in remodels, additions and new construction on multi-family homes, often revitalizing small downtown districts into the hottest markets for business owners and homeowners.
Shorelines Design Group Administrative Support and Project Planning Manager, Lerin Loos, offers some insight on millennial characteristics and style tastes from a webinar hosted by Houzz, a comprehensive online source for home design.
“It was very informative for us as a residential design firm,” said Lerin. “Millennials are described as confident, authentic, unique and productive multi-taskers. During the design process, they want to be included and heard, seeing lots of pictures to show ideas. When designing a home or remodel, we engage them by asking for their thoughts and allowing their creative ideas to become part of the design. Stylistically, they like Modern, smaller homes combined with the rustic texture of New Traditional, prefer open floor plans, open and exposed shelving, dove white kitchen cabinets with pops of color for backsplashes, two sinks in the master bath, and handy charging stations. They want a home that is ‘productive and beautiful’,” said Lerin.
As we work to meet the challenges of designing homes that people want, we realize that the first Gen Z’s are about to enter the work force. Shorelines Design Group is looking forward to the next ten years of this fascinating market, driven by generational life experience, age, family and income.