Home Buyer Survey Reveals Different Motivations for Different Generations

Those seeking a Florida home loan 20 years ago had contrasting reasons for doing so than those currently on the lookout for a Florida home loan. This was just one finding courtesy of a recent Century 21 home buyer survey.

According to the results:

• Baby Boomers were driven to purchase their first home based on family reasons - while Generation X and Y buyers are more likely to take out a Florida home loan as a “safe investment.”
• Additionally, Generation X and Y buyers tend to take longer to buy their first house.
• Also, today’s Generation Y buyers are purchasing first homes at a younger age than their Generation X and Baby Boomer counterparts.

Home loan study findings

These and other insights are highlighted in a national online survey of 1,514 U.S. home buyers that was equally distributed between Baby Boomers (born between 1946-1964), Generation X (born between 1965-1978) and Generation Y (born between 1979-1994) consumers.

The report was conducted by International Communications Research (ICR) on behalf of Century 21 Real Estate LLC. What was the intent? To understand and compare the experiences of the first-home purchase among members of three different generations. Many companies use a home buyer survey to understand their potential client base.

“The Century 21 System is prepared to address the real estate needs of consumers throughout the many stages of homeownership, starting with their first home purchase,” said Tom Kunz, president and CEO, Century 21 Real Estate LLC. “As the most recognized name in residential real estate, it is our responsibility to understand and deliver on the unique needs and additional care many first-time home buyers require, whatever age they are.”

The Century 21 Homebuyer Survey asked the three generational groups questions to discern some of the factors that influence the first-time home-buying experience. What, exactly, are you looking for as you set out on a Florida home loan mission?

Home loan demographics

Today’s Generation Y first-time home buyers are younger than their Generation X and Baby Boomer counterparts. The average age for first-time home buyers was 26 among Generation Y respondents, which is three years younger than Generation X (29) and Baby Boomer (29) survey participants.

Reasons for Buying

Baby Boomers were more likely to have purchased a first home based on a life event, including marriage or birth of a child. Their counterparts, however, tended to purchase a first home based on its appreciation value.

“Safe investment” is a key driver among Generation X (42 percent of survey respondents) and Generation Y (39 percent), versus 35 percent of Baby Boomers who are more likely to invest in a first home for “family reasons.”

When it comes to Florida home loans and other mortgages, Generation X and Generation Y buyers tend to spend more for their first home than Baby Boomers; this represents a larger portion of their household income. On average, the impact on the household income was 21 percent of Boomers’ income as compared to 25 percent of Generation X and Generation Y’s household income.

Where they turn for Florida home loan information

A majority of Baby Boomers (53 percent) ranked real estate brokers/agents as their primary source for shopping for information on their first home, followed by 45 percent of Generation X and 34 percent of Generation Y buyers. Generation Y home buyers (42 percent) rely on online home loan sites far more than their Generation X counterparts (26 percent).

In all three groups of buyers, the majority preferred more frequent contact from their broker/agent when buying a first home (more than 50 percent want contact every few days).

Length of Time to Purchase Home

While Generation Y respondents ranked the Internet as their primary source of home shopping information, it took them longer on average to prepare for the mortgage process and actually purchase their first home. Baby Boomers were the quickest first time home shoppers polled, averaging 4.3 months to buy their first home, followed by Generation X at 4.6 months and Generation Y at 5.4 months.

Dream Home Locales

More Baby Boomers (33 percent) cite the Southeast as the dream home location versus Generation X (27 percent) and Generation Y (25 percent). Today’s younger buyers are attracted to the Northeast as the location for their dream home.

The Southeast and Southwest are the two favorite regions for a second/vacation home for all groups of homebuyers surveyed. The Florida home loan industry is likely to constantly remain strong as a result of these preferences.