Surprising Generational Real Estate Facts for House Flippers

The National Association of Realtors has put out a report called “2017 Home Buyer and Seller Generational Trends,” and it is packed full of useful house flipping real estate facts, as well as general information that house flippers can make use of. The report breaks down home buyers into Millennials (people born between 1982 and 2000), Generation X (born between 1965 and 1981), Younger Baby Boomers (born between 1956 and 1964), and Older Boomers (born between 1946 and 1955). Many of the finding break down the way you would expect, but there are some surprising tidbits mixed in.

For example, Millennials currently make up the largest portion of home buyers at 35% of the market. That isn’t too surprising. But interestingly, because many are weighed down by student debt and haven’t had long to save for a down payment, finding a good price on a home is more important to Millennials than virtually any other consideration. They are willing to live in a smaller home than they’d like with less amenities if they can find the right price. Going above their price ceiling to find the ideal house simply isn’t an option for many price-conscious Millennials.

As a result, Millennial buyers are often ending up in homes in the suburbs rather than in city centers. They still prize amenities like a high walk score, good restaurants, and access to transit, but size and age of a home are much less important than a good home bargain.

Generation X, on the other hand, is characterized by buyers looking for an upgrade home. This is the group with the most money to spend on a new home, and 62% of Generation X buyers have at least one child under the age of 18 living with them. Interestingly, this segment is also the most racially diverse buying segment – even more diverse than Millennial home buyers.

The next group up, Young Boomers, tend to be willing to pay more for the right location. They’re usually looking to downgrade in size and are willing to move the farthest to be close to friends and family. But one in five buyers in this segment are looking for a multi-generational house, either to take in their aging parents or to help support adult children and their families.

Across the generations, only 14% of buyers opted for brand new homes. Millennials are most likely to buy a pre-owned home, and the desire for a new home tends to go up with age. Regardless of age, even up to 90 years old, each generation tends to start their home search online.

We highly recommend taking a look at the full report, which can be viewed for free at the NAR website. As you do your neighborhood research, secure house flipping loans, and start to think about your potential buyer, the information contained here could be incredibly helpful for deciding which property is right for you, which generation will want it, and how to customize your remodel to that buying group’s needs.