You’ve heard me, and others say it again and again…..’Millennials are the biggest demographic group in America. But they are not the only demographic group of course. There are at least four others, and each one plays a role in real estate all across America.
So let’s wrap up with a look at all the other generations in America – and what they mean to real estate.
The Millennials – they officially became the largest demographic group in America last year. The Millennials were born between 1981 and 1997. And according to the US Census Bureau, there are now slightly more than 75 million members of the Millennial generation.
So with those numbers – could they really change the face of real estate in America? Create a buying surge like never before? Well….yes. And we’re starting to see signs that the Millennial buying surge might – might be getting underway.
Last year, THE NATIONAL ASSOCIATION OF REALTORS® says first time buyers made up 32% of the market….now? 35%. The first time buyers are returning to settlement tables all over America.They want to buy homes! And if they can – they do! So if you watch real estate – the Millennials are a generation to watch closely.
The next biggest group of Americans – is the Baby Boomer generation….the people born after World War 2. Specifically, boomers were born between 1946 and 1964….there are slightly less than 75 million Baby Boomers….close, but not quite as big as the Millennials.
The Baby Boomers for the most part, already own homes. Freddie Mac reports that the Baby Boomer generation holds close to 8 trillion dollars worth of equity in real estate….that’s nearly two-thirds of all the real estate wealth in America. NAR reports about 40% of them plan to buy again…so they are a huge force – in American real estate.
And they’re more wealthy than younger generations.
In between the Boomers and the Millennials – is the group of Americans born from 1965 to 1980. They’re called Generation X, or Gen X’ers. The Pew Research Center refers to them as the ‘Middle Child’ of American Generations….Pew also notes that Gen X is smaller than the boomers for two reasons…one, they were born at a time Americans were having fewer children, and also, their generational span is one year shorter than Millennials.
Now the real estate implications of the Gen X’ers is huge – after all – as NAR reports, they’re in their peak earning years! They are the most likely to be married, and most likely to have kids in the house. They also buy the most expensive homes – and the biggest homes of all the generations.
Now of course, it’s not just all about Millennials, Gen Xers and Baby Boomers….there are older and younger generations, too. But the vast majority of real estate transactions happen – among one of those three generations. Each with a different real estate dream, each with different amounts of income, savings and equity – to make that dream come true.
Together – they ARE real estate – in America. A fascinating patchwork quilt – of you, and me, our neighbors, our friends and our homes.
But one of the trends we’re seeing just makes me smile. The Gen Y generation – which is younger than the Millennials.
They do things differently. Different social media, different websites, different viewpoints. Why? Well, they wouldn’t want to imitate the millennials because for the Gen Y’s? The Millennials are just so…..old!