Doesn’t it feel like generational differences impact almost every aspect of our lives? Gen Z basically grew up with a smart device in their cribs while Gen X and baby boomers still prefer to get their news via television or the newspaper. Differences don’t just stop there – folks in these age groups that are looking into purchasing a new home have different specifications when they’re making that “must-have” list.
Realtors are taking notice of the changing trends and they’re predicting that these new priorities will have an impact on the 2022 housing market. Let’s take a look at their real estate predictions.
Gen X (41 – 56 years old)
Middle age homebuyers most likely have adult children that have moved out and now they’re looking to downsize. The Gen X buyer wants to embrace their newfound freedom (in a manner of speaking of course) and is interested in hosting more get-togethers. They want properties with a large yard with ample space to entertain. For this group, the ideal backyard should include an in-ground swimming pool, an upgraded grilling area and/or an outdoor kitchen, a dedicated seating space and professional landscaping.
This age group isn’t just interested in partying the night away. The second item on their priority list is a property with a dedicated home office, as they are established in their careers and retirement isn’t too far away.
Millennials (25 – 41 years old)
Although millennials aren’t having children as early as their parents did, 80% of newborns in 2016 were born to millennials. Now that the children are reaching school age, millennials are keenly aware of what the school district is like when they’re buying a new home. 64.7% of realtors state that homebuyers with children are more likely to inquire about the school district, community activities, and so forth. These parents want to make sure that their children are part of a district that has a good reputation and can give their kids the building blocks necessary to give them the tools to become successful adults.
Realtors also state that millennial buyers are also very career-focused and they, too, are interested in properties with a home office. Realtors indicate that as more businesses allow their workers to work remotely, these buyers may consider relocating further away from the office in an effort to save money or be closer to friends and family.
Gen Z (24 years old and below)
It may sound far fetched, especially in today’s economy, but there are home buyers out there that hail from the Gen Z crowd. Young 20-somethings who have the means to purchase a property make up for 24% of all homebuyers! At this age, Gen Z buyers are just starting their careers and some may even have small children, so they aren’t interested in purchasing a house that requires work. They’re hoping to find a property that is ready to move into… No questions asked.
These buyers also are interested in home offices and the school district, but they also are interested in buying property near a city or metropolitan area so they can enjoy some of that city living. A few surveyed realtors say that some buyers in this group are even willing to sacrifice square footage in order to get a home that’s in the city.
Shifting priorities reshape the future of the housing market
Housing trends will always shift to meet market needs. In the past, top-of-the-line upgrades in the kitchen and bathroom were the most sought after features in a home. However, the ongoing public health crisis seems to have played a big role in what people want.
Will these housing trends continue to be in demand once the crisis is over? It’s hard to say. However, it is safe to say that if you’re considering doing any real estate transactions in 2022, make sure you find a top-rated realtor, as they’ll be able to offer advice, insight, and share their local predictions. With a top-rated agent on your side, you can’t go wrong.