After several years of strong employment growth and significant growth in home values, The US real estate is witnessing good purchases from Generation X (born in 1965-79) households, according to a survey conducted by National Association of Realtors (NARs).
As per the report, most of the Gen X households previously struggled with long-term debts including student loan, no equity in their home, job losses, uncertain economic condition and falling home values during and after the Great Recession. The US government has been focusing on strengthening job market which helped improve their economic condition.
During the difficult times, many Gen X households wanted to sell their house but couldn’t because their home values were worth less than their mortgage. But since 2011, the US housing market has seen almost 41 per cent average growth in home prices which has helped them build enough equity to finally sell their home and move in to a larger home.
Among the entire home purchase record, Gen Y buyers or Millennials (born after 1980) are leading with 34 per cent followed by baby boomers (born in 1946-1964) with 30 per cent then Gen X buyer with 28 per cent which is the highest since 2014 and Silent Generation (born in 1925-1946) with 8 per cent.
The report also reveals some important facts such as young boomers (born in 1955-1964) consider their adult children before buying a home and student loans drive the decision home purchase for all the generations including millennials and Gen X buyers. Furthermore, Millennials are moving to suburbs in order to decrease their financial investment. Most of them go online and use a real estate agent to have any purchase deal.
Source: World Property Journal