Generation X Increases Home Purchase Share in 2016
Generation X was the only age group demographic to buy more homes in 2016 than it did in 2015, reports Realtor.com. The move has been called a generational comeback by some housing experts.
Generation X buys 28 percent of homes
The surge was reported in the latest National Association of Realtors (NAR) “Home Buyer and Seller Generational Trends” survey, querying 5,500 homebuyers who bought between July 2015 and June 2016. Generation X, now aged between 37 and 51, made up 28 percent of homebuyers in the latest survey, up from 26 percent a year ago.
“That group suffered the most,” Jonathan Smoke, chief economist for Realtor.com, told the news outlet. “They were entering homeownership at the peak of the housing bubble and were also the ones most likely to suffer job losses.” Yet Generation X has largely recovered from the underwater mortgages and job losses of the Great Recession. “Now, they’re actually in their prime earning years, and they’re also far more likely to have families. It makes complete sense that they’re coming back,” said Smoke.
Generation X buyers doing well financially
According to the survey, Generation X respondents were doing well financially, earning a median household income of $106,600. Younger baby boomer and millennial buyer respondents reported lower earnings, at $93,800 and $82,000, respectively. Earnings carried over to the median price points for each group’s homes. Generation X buyers spent a median of $261,000, compared to $230,000 and $205,000 for younger baby boomers and millennials, respectively.
Millennials hold top market share position
Still, millennial buyers, now aged between 20 and 37, remained the generation with the largest share of home purchases. According to the article, this group purchased 34 percent of homes in 2016, down slightly from its 35-percent market share in 2015.