Much attention has been given to what Millennials and Baby Boomers are looking for in terms of buying a house. However, Gen X are the 2nd biggest home buying demographic. Not only that, they are buying some of the highest priced homes. So when it comes to selling your property, it pays to give a little thought to the Gen X real estate market.
Gen X: Real estate numbers
There are 62 million Americans who fall into the demographic age which is Gen X. Many of these will be in their early 50s or late 40s. They accounted for 24% of buyers in an NAR report published in 2019. The same report also indicated that they are the highest income earners of all the generations with a median income in excess of $113,000.
What’s important to Gen X buyers
The desire for space
Gen X are the generation which seems to enjoy having as much space as possible. While Millenials are more open to the idea of living in smaller spaces, such as tiny homes, or in condos, Gen X predominantly prefers to buy single family homes with a median space coverage of 2,100 sq ft.
This is likely due to younger members of Gen X still having children who are going to school. It is also likely that Gen X are looking at the time approaching when they may want to bring their parents who will soon require more care.
The home of their dreams
Gen X being at the height of their earning power are in a position to spend more than other demographics. They are also more inclined to invest in a home that they consider will be their main property investment. Millennials who have not yet reached their full earning potential are more likely to be buying their first home. Baby Boomers are more likely looking to buy a secondary home, downgrade to something more in line with their lifestyle, or alternatively buy very expensive luxury properties.
When Gen X buys a home, they are looking to stay there for many years, have space for a growing family and possibly bring an older generation into the home.
The need for functional homes
There does not seem to be a preferred aesthetic style for Gen X, with size and function playing a more important role in decision making. Gen X are looking beyond their own immediate needs, and trying to ensure that the home has good access to schools, parks and/or hospitals.
In terms of housing layout, it seems obvious to say they are looking for multiple bedrooms and extra rooms for spaces that can be made into specialized areas such as home offices or gyms.
It’s useful to know that Gen X, while not the first generation to be raised in a completely digitized world, were there at the beginning of home digitization. As such they are very comfortable and welcoming Smart home technology. In fact, Smart homes are appealing to a demographic that’s looking to manage a multigenerational household.
While Millennials will increasingly become a bigger part of the home buying market, and spend more as their growing power increases, there are still quite a few years left when as a seller, the needs of the Gen X real estate market should be firmly rooted in mind.