Real estate authority Zillow just released their Consumer Housing Trends report, which details who is buying homes in the USA. These are all averages but you can check out the statistics to see how many of them apply to your home purchase situation.
According to the report, the typical home buyer is in their mid 30s to early 40s with 65 percent being male, 67 percent being married, 75 percent college educated, and 83 percent actively looking for a home.
• Their median annual household income runs $87,500. (Note that the Sacramento Bee says the typical annual income needed to buy a median-priced home in Visalia is $38,000, and for Tulare it’s $27,000.)
• About 75 percent of the buyers are Caucasian, 11 percent Latino, 7 percent African-American, and 5 percent Asian/Pacific islander.
• About 47 percent are first-time buyers who spend a median of $200,000 on a home. Repeat buyers are typically older at a median 42 years. They typically spend $235,000.
• About 82 percent of West Coast buyers are looking for a single-family home compared to 83 percent throughout the USA. Only 23 percent in the West want townhouses and 13 percent look for condos or co-ops.
Home buying preferences vary by generation.
• The biggest chunk of homebuyers, 42 percent, consist of Millennials with 31 percent for Gen X, 16 percent for Baby Boomers, and 10 percent for the Silent Generation.
• Millennials have the most flexible wants and are the most likely to consider townhouses or duplexes/triplexes.
• Generation X preferred single-family homes and are the least likely to buy condos and co-ops.
• Baby Boomers have the greatest percentage, 10 percent, who are willing to buy manufactured housing with 14 percent looking at condos or co-ops.
• The Silent Generation is more interested in condos or co-ops at 23 percent, or townhouses at 21 percent.
What Buyers Want
About 50 percent of Millennials and 54 percent of Generation X prefer to consider newer properties compared to 38 percent of Baby Boomers and 39 percent of the Silent Generation. About 51 percent of men prefer the new compared to 44 percent of women, and 55 percent of families with kids also like new homes, compared to 42 percent of families without kids. The following are the major features that buyers focus on:
• Energy efficiency at 48 percent
• Reviews and ratings of builders at 47 percent
• Customization options at 45 percent
Most buyers look for homes both online and with the help of a real estate agent. Many start their purchasing tasks using websites and apps before consulting the expertise of a professional.
• Mobile devices are more popular for those under 50 years of age with 66 percent of Millennials and 62 percent of Generation X relying on smart phones. Only 42 percent of Baby Boomers and 37 percent of the Silent Generation use mobile.
• Millennials also like to use personal networks, such as friends or neighbors, to help them with the house hunt. They are also more likely to visit a builder sales center.
• About 78 percent of buyers expect sellers to respond within 24 hours. The remainder consider it okay if the response takes two or more days.
• Before settling on an agent, 60 percent of home buyers check out the agent’s knowledge of the market, 58 percent check out the website of the agent, 56 percent ask their personal network about experiences with the agent, and 50 percent read the agent’s online reviews. Only about 44 percent interview agents.