Are you wanting to buy a home and are curious who your competition is? Are you wanting to sell your home and are wondering who your buyers might be? Allow our KW Memorial real estate team to help fill you in on who is currently buying in the Houston real estate market!
Millennials are the biggest group of buyers right now. In last year’s Home Buyer and Seller Generational Trends report, millennials made up 34 percent of buyers, in comparison to 30 percent of baby boomers. Research done by the National Association of Homebuilders found that 90 percent of millennials want to buy a house someday.
Millennial buyers tend to be more financially savvy than people think. They have budgets and plan on sticking to them. Many of them tend to skip the starter home and buy a forever home, since they’re buying later than other generations. Others are looking for starters or fixer uppers because of a tight budget. Bedroom quantity and outdoor space is important to them. Ninety percent of them work with real estate agents, and most start the home search online. Millennials will negotiate longer than both those in generation X and baby boomers.
However, a recent report from RentCafe found that millennials spend more on rent than any other generation has. Between the ages of 22 and 29, millennials spent $92,600 on rent, on average. This compares to $82,200 from Gen Xers and $71,000 from baby boomers. Gen Z, the generation after millennials, is expected to spend an estimated $102,000 within that age range.
This, combined with student loan debt, is causing homeownership to be hard for millennials to pull off. They have a hard time saving up for a down payment, and now prices and mortgage rates are on the rise. This accounts to why they tend to buy later in life compared to other generations. We’ll see how this plays out in the future! But millennials who want to buy a Houston home should act sooner than later to save money.
It’s worth noting that Gen X and baby boomers still have a decent amount of buyers. Gen Xers are buying first homes and move-up homes. Baby boomers are downsizing and relocating.
Another group of buyers to watch for is boomerang buyers. These are homeowners who had to foreclose and/or claim bankruptcy during the Great Recession. Many have rebuilt their credit is as little as 2-3 years rather than the 7-10 years it used to take, a study by Lending Tree found.
So, we’ve got plenty of eager buyers in the Houston real estate market, but not enough sellers! Inventory is still below average, making for a competitive market. If you want to sell, now is the ideal time! Contact our Keller Williams Memorial team this spring season, we are here and ready to help you with all of your real estate needs.