28 March 2008 18,790 views No Comment Print This Post  Email This Post

By Jessica Lautz, Senior Research Analyst

Real estate agents may wonder why they should care about the Generation Y age group, ages 18 to 30. These unique home buyers are the youngest of the home buying segment, and are the most likely to purchase a home in the next two years in comparison to any other age group.

Based on results from the Profile of Home Buyers and Sellers in 2007, 82 percent of Generation Y purchased their home through a real estate agent or broker, more likely than any other age group. Fifty-two percent, of the Generation Y age group also think a home is a better financial investment than stocks. This is a target audience for the next home buyers.

So who are Generation Y home buyers? This group of home buyers has a median household income of $61,000. Fifty-six percent are married, 20 percent are single females, 10 percent are single males, and 13 percent are unmarried couples. Nineteen percent are a race other than white.

When last surveyed, 36 percent of these buyers found home through real estate agent, 35 percent found home on internet (higher than any other age category), and 5 percent found home through home builder or other agent (lower than any other age category).

The Internet plays a large role for this home buying segment. The 18 to 30-year-old age group grew up with the Internet and were always familiar with computers as children. Four in 10 read blogs or use social networking Web sites at least a few times a week. They are more likely than any other age group to frequently use the internet to search for homes-77 percent. These buyers are also most likely to take action from Internet searches-76 percent drove by or viewed home, 60 percent walked through home viewed online, 26 percent requested more information.

The most likely reason for this segment to purchase a home is because of the desire to own a home of their own and establish a household (62 percent). Not only does this segment care about the affordability of a neighborhood where they are looking for a home, they also care about the quality of the neighborhood and whether it is convenient to their job.

More than any other age group, Generation Y is likely to find the real estate agent they used to purchase their home by either a personal contact that is or a referral by a friend, neighbor, or relative. In comparison to other age groups, the most important factors for their agent to have is honest and trustworthy, agent is friend or family member, and a good reputation. They want their agent to find the right home to purchase, help with price negotiation, and help with paperwork. Top benefits Generation Y found in their agent was the agent helped buyer understand the process, pointed out unnoticed features/faults with the property, and negotiated better sales contract terms.

http://www.realtor.org/research/commentary_geny.html

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