At 32% of the commonwealth of home-buying age-generally defined as those who are at least 30 years old Will Lead the Housing Market Recovery,
Young Home Buyers Will Lead Housing Market Recovery, Says NAHB
RISMEDIA, March 21, 2011-Generation X-young families and adults ages 31 to 45-are anticipated to lead the home-buying reformation as it gets underway, according to real estate high-level advisers who spoke at an instructional webinar produced by the National Association of Home Builders (NAHB) in partnership with Builder magazine.
Those promising home buyers are most likely to think it's a immeasurable time to get off the fence-and have strong opinions about the design features their new homes will include.
At 32% of the community of home-buying age-in most cases defined as those who are at least 30 years old, the Gen X population cohort isn't the largest, but it's the most mobile, said presenter Mollie Carmichael, principal of John Burns Real Estate Consulting in Irvine, Calif. "They are in full force with their careers and they need to accommodate growing families," she said.
In sharp contrast, even though they constitute 41% of future home buyers, Baby Boomers carry on to wait for the market to improve, and their decisions to defer retirement also delay their decisions to downsize into a smaller home, Carmichael said.
Nearly all of the 10,000 buyers and potential buyers in 27 metro areas that the consultive company surveyed were bright about a new home purchase, with between 85% and 89% saying that it was a good time to buy a home. Only 13% said they thought home prices would continue to fall, additionally evidence that it's "not all about price," she said. "They want something compelling, from a design or personalization standpoint," said Carmichael.
In addition, though the typical home size is curtailing, a larger part of likely buyers said they would like a bigger home than the one they have. "These are first-time buyers or younger families looking for more room to grow," she said.
Seventy percent said that they were willing to pay $5,000 more for a green home, but those answering to the survey said that they envisioned new homes to already have many green technology features. They also said they would pay a premium for dark wood cabinets, a separate tub and shower and a fireplace in the living room, and more preferred a great room over formal spaces.
And while community conveniences are important to Gen X buyers, 46% said they prefer a home in a large-lot, suburban development, versus the 21% looking for a traditional or "walkable" neighborhood.
Webinar panelist Heather McCune, director of marketing at Bassenian/Lagoni Architects in Newport Beach, Calif., also emphasized that design will be important in generating sales in the impending marketplace. "The notion of 'build it and they will come' no longer works. Design matters," she said.
McCune said buyers are looking for homes with a access between indoor and outdoor spaces, even in colder climates, to create the recognition of worth of greater home size, even if the space is only usable for part of the year. They also want more storage, an open floor plan and flexibility in the garage.
"While Gen X numbers are tinier than the birth cohorts before and after them, their numbers have been amplified by steady immigration," said NAHB Chief Economist David Crowe. "Gen X may wait longer than their predecessors to establish their own household or buy a home because of the recent recession impacts, but the trends are still likely to occur as they have for past generations."
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