- It’s true that millennial generation has been pretty active in real estate but guess what; Generation X is also making its comeback in the real estate in a quieter manner. Nevertheless, this comeback is going to be huge in a very near future, and it can be observed if we follow some patterns of sale and purchase of the properties in different areas.
According to statistical data, the people aged between 37 to 51 years have bought 28% of the property in 2016, a 2% rise as compared to the previous year.
- Why Gen X is making this huge comeback?
- The answer to this question is fact that people of Gen X have the responsibility to accommodate more people in a home as compared to other generations. They have to care about the children who are not yet ready to get started with their professional careers, and some people have parents who they want to live in their homes.
Furthermore, this group of people is generally more experienced and, hence, they know how to make more money. With extended skills, they are more likely to fulfill their accommodation requirements in a better way as compared to the people of other age groups.
According to data, an average person from Gen X has been found to earn $106,600 a year. On the other hand, the average income per person among young boomers is $93,800, and for millennial is $82,000.
- But Gen X is not buying most of the homes
- Although, Gen X has started doing well from over the year, they are not the ones buying most of the homes. The individuals buying most of the residential properties are from millennial group. Even though, there has been a decline in the percentage of total homes bought by 1%, millennial are still the purchasers of 34% of the total home purchased this year. However, they have been buying cheaper homes as compared to the Gen X and young boomers.
Dowell Myers from University of Southern California in Los Angeles says, “The millennials are a sleeping giant. They should be big home buyers over the next five years as long as the credit markets are willing and the supply [of available properties] exists.”
- And a little surprising fact
- By looking at who is buying more properties at particular areas, you might get surprised. Although the millennial people seem to like the city life more than anyone, they seem to prefer buying properties are suburb areas. The ones who buy more in the cities are baby boomers.
Only 15% of the buyers from millennial group have bought homes in urban areas. This percentage is lesser as compared to previous year in which 17% of millennial buyers purchased properties in the urban areas.