The Divas have known for a long time now that this generation of Diva Dwellers are different than previous generations.Â They are super savers, smarter than most, and more importantly know what they are getting themselves into as aÂ Diva Dweller.Â The Divas did aÂ blog post about a year ago based on our friend’s experience trying to find a real estate agent in New York City. It was interesting today to stumble across an article about how Gen X and Y buyers approach buying homes that seemed to mirror our own street experience.
The fact that I still find interesting is that there is a whole generation of real estate agents that do not realize that there is a huge cultural shift happening in how Gen X and Y are approaching the home buying experience. Many of these agents are not huge fans when their clients come to them with a ton of data. The Seattle Divas see the home buying process as a collaboration and we really want to ensure our clients are more knowledgeable than others in the process. We want the best deal, we want a house that we know will appreciate or weather a downturn, and more importantly we want our Diva Dwellers to love their house as much as we enjoy being with our clients.
The Divas are very lucky to count the Gen X and Gen Y generation (or as we like to call them Savvy Urbanites) as a mainstay of our client demographic. About 45% of our Diva Dwellers this last year just turned 30 or were younger. Majority of these folks saved close to 20% for their down payments, bought under their “loan approval”, and knew more about the market than the average consumer. In many respects they make up exactly the findings of the recent survey byÂ Better Homes and GardensÂ® Real Estate.
Next Generation of Homebuyers Are Knowledgeable, Responsible and Savvy According to New Better Homes and Gardens Real Estate Survey
Working a Second Job and Moving In With Mom and Dad Are Unexpected Ways Generations X and Y Are Willing to Save for a Home
PARSIPPANY, NJ–(Marketwire – Oct 22, 2012) -Â Better Homes and GardensÂ® Real Estate today released the results of a national survey of 18-35 year old Americans that reveal that the impact of the housing crisis has given rise to two of the most knowledgeable generations to become homebuyers, Generations X and Y, which account for an estimated 103 million Americans. More than three-quarters (77 percent) of the Gen X and Y Americans surveyed believe that they have become increasingly knowledgeable about homeownership due to increased media coverage that has magnified real estate topics throughout the past six years. The survey’s findings show that these two younger generations of potential homebuyers are not deterred from home buying and believe owning a home is a key indicator of success (75 percent). Furthermore, they are willing to do their research and save in ways that may surprise those who believe the values of Gen X and Y have strayed from those of their parents, including taking a second job and moving in with mom and dad.
“Every generation faces defining economic events that alter their collective perspective,” said Sherry Chris, president and CEO of Better Homes and Gardens Real Estate LLC. “‘The Greatest Generation’ was shaped by the Great Depression and Baby Boomers were impacted by the oil crises throughout the 1970s. Gen X and Gen Y experienced their ‘coming of age’ moment during the largest housing market downturn in American history. As such, these generations believe that the details, risks and rewards of home buying are integral to their planning. Better Homes and Gardens Real Estate recognizes this shared generational experience and its effects on young homebuyers. We realize how important it is for real estate professionals to understand generational differences and be able to adapt their business to best serve these two generations that will drive the economy for the next 30 years.”
Key findings from the Better Homes and Gardens Real Estate survey include:
- Not the “Me” Generation.Â The majority of Gen X and Gen Y survey respondents (71 percent) understand that homeownership is not something they deserve; rather it is something they must earn. Nearly all those surveyed are willing to adjust their lifestyle to save for a home by eating out less (62 percent), working a second job (40 percent) or even moving back home with their parents (23 percent).
- In the Know.Â Sixty-nine (69) percent believe that the recent housing downturn has made them more knowledgeable about homeownership than their parents were at their age. Gen X and Y members appear to be doing their homework before making one of the biggest investments of their lives. For those surveyed, interest rates (58 percent), home prices in a desired neighborhood (59 percent), and the ability to secure a loan (51 percent) are the top areas to research before buying.
- Homeownership is the New Bling.Â Gen X and Y are not blinded by flashy signs of success; 75 percent believe owning a nice home is a fundamental indicator of success over taking extravagant vacations (12 percent), owning an expensive car (9 percent), or owning designer clothing (5 percent).
- First Things First.Â Gen X and Y want to make sure they areÂ readyÂ to own. Sixty-nine percent believe someone is ready when they can afford to buy while also maintaining their lifestyle. For 61 percent of respondents, the “readiness indicator” is when they’ve landed a secure job.