The National Association of Realtors® (NAR) recently released its 2021 “Home Buyer and Seller Generational Trends” report. While many may believe that this information is simply for those that are either in the real estate business or just curious, it is actually important data for sellers and real estate investors as a whole. The results of these reports can certainly guide sellers and real estate investors with buying and selling strategies.
Millennials continue to be a driving force in real estate
Not surprisingly, millennials continue to make up the largest share of homebuyers in the market. As a matter of fact, this trend has continued since 2014. Eighty-two percent of younger millennials and 48% of older millennials were first-time homebuyers. These figures represented more first-time homebuyers than any other age group.
Multi-generational homes remain in demand
The current real estate market is continuing to see a stronger demand for multi-generational homes. These homes tend to house adult siblings, adult children, parents, and grandparents. In fact, 18% of homebuyers aged between 41 and 65 purchased a multigenerational home in the past year. Homebuyers aged 75 to 95 were the second most likely to purchase a multigenerational home.
While there are a variety of reasons for the increase in multi-generational homes, the major reason is to cut costs. In addition, many families have opted to quarantine together during the pandemic.
The biggest challenges in the real estate market
Inventory and affordability challenges continue to be the biggest headwinds for buyers in this market. In particular, buyers aged 22 – 30 have seen the biggest obstacles with home affordability. This has resulted in approximately 28% of those in that age group to have to live with parents, relatives or friends before purchasing in order to save up for a home. According to the NAR, this percentage is higher than any other generation.
Although the past year has certainly brought upon some new trends in the real estate market, some things have remained consistent. In particular, real estate agents continue to be at the center of real estate transactions. According to NAR, of all buyers, 88% said they used a real estate agent as an information source during their home search. This figure rises to 91% among younger millennial buyers, aged 22 – 30. Needless to say, a real estate purchase is likely the biggest lifetime investment for most Americans. Therefore, it is critical to have professional and knowledgeable guidance throughout the way.
If you are looking to buy or sell in South Florida, contact Live South Florida Realty, Inc. Let our local knowledge and experience work for you.