Home Buyer and Seller Motivations/Behaviors

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Home Buyer and Seller Motivations/Behaviors

Key Takeaways

  • According to the National Association of Realtors, 24% of home buyers in the US are between 41 and 55 years (Generation X).
  • The median income for all home buyers in the US is $96,000.
  • Sixty-two percent of home buyers in the US are married.

Introduction

The demographic and psychographic profiles of home buyers and sellers in the US have been provided in the following brief. It is noteworthy that psychographic information on home buyers and sellers was limited in the public domain. Further details on logic have been provided in the Research Strategy section.

Demographic Profiles

Home Buyers

Age

Median Household Income by Age

  • The median income for all home buyers is $96,000. The median household income by age has been provided below.
  • 22 to 30 years - $80,000
  • 31 to 40 years - $105,600
  • 41 t0 55 years - $113,300
  • 56 to 65 years - $95,700
  • 66 to 74 years - $81,700
  • 75 to 95 years - $72,300

Marital Status and Gender

  • Sixty-two percent of home buyers in the US are married.
  • The percentage of single female home buyers is 18%.
  • The percentage of single male home buyers is 9%.
  • The percentage of unmarried couples who are home buyers is 9%.

Race

  • In the US, 83% of home buyers are white/Caucasian.
  • Hispanic/Latinos make up 7% of home buyers in the US.
  • Asians/Pacific Islanders make up 5% of home buyers in the US.
  • Blacks/African-Americans make up 5% of home buyers in the US.

Education

Home Sellers

Age

Median Household Income by Age

  • The median income for all home sellers in the US is $106,500. The median household income by age has been provided below.
  • 22 to 30 years $106,500
  • 31 to 40 years - $121,300
  • 41 to 55 years $132,700
  • 56 to 65 years $103,800
  • 66 to 74 years - $84,000
  • 75 to 95 years - $70,700

Marital Status and Gender

  • Seventy-one percent of all home sellers in the US are married.
  • The percentage of single female home sellers is 16%.
  • The percentage of single male home sellers is 7%.
  • The percentage of unmarried couples who are home sellers is 4%.

Race

  • About 90% of home sellers in the US are white/Caucasian.
  • Four percent are Hispanic/Latino.
  • Three percent are Asian/Pacific Islanders.
  • Three percent of home sellers are black/African-American.

Education

Psychographic Profiles

Home Buyers

Generation Z

  • Generation Zers are superficial. They value “cool” products more than the experience they get from them.
  • The age group uses smartphones 15.4 hours per week. They are optimistic about the future.
  • Generation Zers are disruptive. They have embraced electronic currencies and do not always follow traditional career pathways.
  • Generation Z does not believe in the American dream.
  • According to Real Estate Express, “97% imagine they will become homeowners one day, with their first home purchase between age 26 and 30.” More than 80% say they will hire a real estate professional

Millennials

  • Millennials are educated, frugal, and tech-savvy. Therefore, most of them use technology to purchase houses. They leverage the internet to find answers to questions about real estate.
  • Millennials ask for advice and opinions from friends and family.
  • In addition, they are likely to buy fixer-uppers, buildings that need remodeling and repairing. Generation Z purchases small houses at low prices. Sixty percent prefer single-family detached properties and 9% would settle for a multifamily property.
  • Because of student loans, millennials find it difficult to save for their down payments.
  • Millennials do not rush to be married or have babies, which increases the average age of first-time home buyers in the United States.

Generation X

  • Generation X is more likely to purchase a second home. As of April 2016, 63.5% of Generation X owned homes.
  • Generation X prefers purchasing new houses with yards and storage spaces.

Baby Boomers

  • Baby boomers spend a significant amount of time online. They spend about 174 hours a month online. In addition, approximately “15% of them have a Facebook account.”
  • Most baby boomers use real estate agents when shopping for a house. Baby boomers take time to compare houses before making an offer.
  • Baby boomers are affluent spend on luxuries. “Memories and emotions are part of their decision-making process.”

Silent Generation

  • When buying a house, seniors tend to move close to their family and friends.
  • Approximately 70% of them prefer single-family homes.
  • People in the age group are loyal customers. Therefore, they are likely to use the same real estate agents or brokers for a long time.
  • Because some Baby boomers have special needs, they prefer properties that will make their lives easier and have a high level of privacy.
  • The silent generation requires help with planning their estate. “Between 55% and 60% of Americans do not have a will and trust, so their properties and estate will be split up during probate an expensive and time-consuming legal proceeding.”

Home Sellers

  • The most common reason why home sellers sell their houses is the “desire to move closer to family and friends.” Other reasons are the size of the house and when the neighborhood becomes less desirable.
  • Ninety percent of home sellers use a real estate agent to sell their houses. In addition, in 2021, about 26% of sellers offer incentives to attract buyers, which is a drop from 46% the previous year.
  • Eighty-two percent of recent sellers contacted only one agent when looking for the right agent to sell their house.
  • About 89% of sellers listed their homes on the Multiple Listing Service (MLS), which is the number one source for sellers to list their homes.

Comparison of Psychographic and Demographic Data

Home Buyers

New Jersey

  • In 2020, 38% of homeowners in New Jersey were first-time buyers.
  • The typical buyer in New Jersey was 45 years old with a median income of $103,600.
  • Married couples made up 61% of recent buyers in New Jersey. In addition, single females made up 18%, single males 9%, and unmarried couples 9%.
  • In New Jersey, 11 percent of home buyers bought a multi-generational home to take care of parents who were aging. They also bought these homes because of adult children moving back home, cost savings, and spending time with aging parents.
  • Eighty-nine percent of homebuyers in New Jersey identify as heterosexual, 2% bisexual, and 3% gay or lesbian.
  • Veterans make up 12% of recent home buyers and active-duty members make up 1%.
  • In New Jersey, 31 percent of home buyers purchased a home because of the desire to own a house.

Colorado

  • In 2020, 25% of homebuyers in Colorado were first-time buyers.
  • The typical buyer in Colorado was 47 years old with a median income of $108,800.
  • Married couples made up 67% of recent buyers, single females 15%, single males 9%, and unmarried couples 7%.
  • Eleven percent of homebuyers in Colorado purchased a multigenerational home to take care of parents who are aging, accommodate adult children moving back home, for cost savings, and to spend more time with aging parents.
  • Ninety percent of homebuyers in Colorado are heterosexual, 3% gay or lesbian, and 2% bisexual.
  • Seventeen percent of recent homebuyers in Colorado are veterans and 5% are active-duty members.
  • Twenty-five percent of homebuyers in Colorado bought a house because of the desire to own a home.

Florida

  • First-time buyers in Florida make up 23% of home buyers.
  • The typical buyer in Florida is 56 years old with a median income of $90,500.
  • In Florida, 61 percent of home buyers are married couples, 21% single females, 8% single males, and 9% unmarried couples.
  • Twelve percent of homebuyers in Florida bought multigenerational homes to look after their aging parents, accommodate adult children moving back home, and save money.
  • Ninety-one percent of homebuyers in Florida are heterosexual, 4% gay or lesbian, and 1% bisexual.
  • Twenty percent of recent homebuyers in Florida are veterans while 2% are active-duty service members.
  • Twenty-two percent of homebuyers in Florida purchased a home because they had the desire to own a house.

Home Sellers

New Jersey

  • The typical home seller in New Jersey is 57 years old and has a median income of $114,600.
  • In New Jersey, the most common reason for sellers selling their home was the need to move close to family and friends.
  • In New Jersey, sellers live in their home 15 years before selling.
  • Ninety percent of home sellers use real estate agents to sell their houses.
  • In New Jersey, recently sold houses stay in the market for a median of four weeks.
  • Twenty-one percent of sellers in New Jersey “offered incentives to attract buyers.”
  • In 2020, home sellers sold their homes for a median of $71,500 more than they purchased it.
  • Sixty-four percent of sellers in New Jersey were satisfied with the selling process.

Colorado

  • The average home seller in Colorado is 47 years old and has a median income of $108,800.
  • The most commonly cited reason sellers sell their homes is the desire to move closer to friends and family.
  • Sellers in Colorado typically live in their homes for ten years before selling.
  • Ninety-two percent of home sellers in Colorado use a real estate agent to sell their houses.
  • Recently sold homes in Colorado were on the market for a median of two weeks.
  • Twenty-three percent of sellers in Colorado offered incentives to buyers.
  • Home sellers in Colorado sold their houses for a median of $48,500 more than they purchased them.
  • Sixty-nine percent of the home sellers in Colorado were satisfied with the selling process.

Florida

  • The typical home seller in Florida is 62 years old and has a median income of $94,000. The most common reason sellers sell their houses is the need to move closer to family and friends.
  • Sellers in Florida live in their homes for approximately nine years before selling.
  • Eighty-nine percent of home sellers in Florida use real estate agents to sell their houses.
  • Recently sold homes in Florida stay in the market for a median of four weeks.
  • Thirty-two percent of sellers in Florida offer buyers incentives.
  • In 2020, sellers sold their homes for a median of $69,500 more than they bought them.
  • Sixty-seven percent of sellers in Florida were “very satisfied with the selling process.”

Research Strategy

For this research on home buyer and seller behaviors, we leveraged the most reputable sources of information available in the public domain, including industry sites, such as the National Association of Realtors, Real Estate Agents, and Colorado Realtors. It is noteworthy that even after searching through these sources, the psychographics for home buyers and sellers were limited in the public domain. For these reasons, we provided the information we found on general habits, beliefs, and behaviors of home buyers and sellers in the US.

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