Younger Boomers: Purchase Multigenerational Homes
April 12, 2017 | Amanda Riggs
Younger Boomers, buyers ages 52 to 61 years, make up 16 percent of all home buyers in 2016. The median age for this group is 57 years old and they were born between 1955 and 1964. This age group is the most likely to purchase a multi-generational home at 20 percent. Their reasons for purchasing a multigenerational home are children or relatives over the age of 18 years moving back in (20 percent), health/caretaking of aging parents (15 percent), to spend time with aging parents (11 percent), and children over 18 years that never left (10 percent).
For Younger Boomers, the primary reasons they purchased homes are a job-related relocation or move (11 percent), desire to be closer to friends and family (10 percent), and the desire for a smaller home (10 percent), more than other generations. Compared to other buyers, they are the most likely to say that they did not have much choice and they had to purchase when they did (22 percent).
Younger Boomers are the least likely to purchase in the suburbs (49 percent) and most likely to purchase in rural areas (13 percent) compared to other generations. They have the second highest median household income at $93,800. They also purchase the second most expensive homes of all generations with a median home price of $230,000. This generation of buyers also purchase the second largest homes in size at a median square footage of 1,900.
Younger Boomers are the most likely to consider heating and cooling costs very important. This age group is the least likely to compromise on the price of the home as well as the quality of and distance from schools. Younger Boomers move from their previous residence at a median of 15 miles from their previous residence.
Younger Boomers are the most likely to look online for properties for sale as their first step in the home search process (53 percent). They are also the most likely to utilize online video sites as useful search information on homes (63 percent).
Younger Boomers are the most likely to use money from a 401K or pension fund including a loan for the downpayment of their home purchase. This age group is the most likely to feel that the mortgage application and approval process is easier than expected (24 percent).
Younger Boomers are the third largest share of home sellers last year at 20 percent. They have the second highest median incomes for sellers at $111,100 and sold the highest median priced homes at $279,800. Younger Boomers are the most likely to sell a detached single-family home and sell the largest homes at a median of 2,200 square feet. They are the most likely to offer home warranty incentives to help sell the home.