Move Up Buyers Continue To Dominate The Housing Market

Dated: January 27 2016

Views: 715

The millennial generation is poised to make a significant impact on home design--but first, many young consumers have to move out of their parents’ homes and into a place of their own, according to NAHB researcher Rose Quint. In 2015, about 15 percent of adults ages 25-34 lived with a parent, translating into 1.3 million people who normally would be forming their own households, Quint said last week at a press conference during the 2016 International Builders’ Show in Las Vegas.


Quint had anticipated that new mortgage programs and looser mortgage insurance requirements unveiled a year ago would have led to an increase in consumers buying homes for the first time. But a look at the size of the typical new single-family home in 2015 found the opposite: Home sizes grew to an average of 2,721 square feet, the highest yet, and an indication that the new-home market continues to be dominated by move-up buyers, rather than first-time buyers.



"Before we see that expected pullback in square footage and price, we’re going to have to see a significant return of the first-time buyer," who is more likely to buy a smaller home at a lower price point, Quint said.


This year, home buyers of all ages say they are looking for homes with separate laundry rooms, Energy-Star appliances and windows, exterior lighting and patios. Young buyers especially have strong preferences for energy efficiency and smart home technology; comfortable, workable kitchens and more casual spaces. What they don’t want are rooms with cork flooring, elevators, pet washing stations, expensive outdoor kitchens and fireplaces, and two-story entryways and family rooms. And their countertops should be granite, but never laminate, according to a fall 2015 survey of potential buyers.


At the same press gathering, Better Homes and Gardens brand executive editor Jill Waage echoed Quint’s findings on preferences for well-equipped kitchens and casual, comfortable living spaces--especially outdoor living rooms, where millennials want to entertain their families and friends. 


What’s important about this generation is their comfort with technology. "They are the first generation to walk into homeownership with a smartphone in their hands," she said during the press conference.


These millennials want to use technology to make entertainment choices easier; monitor the comings and goings of family ments and reviews, and they know what’s worth it," and have probably created a Google alert so they know when it’s on sale, she said.


Their home improvement preferences center on home organization and workspaces, as the separation between working in an office and telecommuting continues to blur.


"This generation is searching out ideas, following bloggers," and creating Pinterest boards with their preferences, Waage said. "They’ve already curated their dream home online, saving it on their boards so they can [be ready] when the day finally comes.”


Source

Blog author image

Mark Ross

For Mark Ross, founder of Ross NW Real Estate and professional real estate broker, real estate has always been the career of choice. During his 25+ years in the industry, Mark has gained experience in....

Latest Blog Posts

The Housing Market Is Hot But Not In A Bubble

Existing home sales came in at a whopping 6,850,000, beating estimates with the highest print since 2006. Days on market fell from 36 days to 21 days on a year-over-year basis. Cash buyers remain at

Read More

10 Ways To Enjoy Your Outdoor Living Space All Year

Some believe that the end of summer also marks the final days of enjoying outdoor barbecues, parties, and casual get-togethers. Yet, just by adding a few design elements to your outdoor space, you

Read More

3 Ways To Tap Your Home Equity And Which One Is Right For You

You need to come up with some cash, fast. Maybe you have a leaky roof that desperately needs fixing or you need help paying for your kid's first semester of college. But where do you turn?If you're

Read More

These Pandemic Related Housing And Design Trends Are Not Going Away

Home trends come and go, but social distancing and staying at home have ushered in a new way of life—and some of those changes have spurred home trends that are likely to stick around well past

Read More