The next generation of homebuyers

More than 77% of Generation X and Y Americans 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, according to a recent survey from Better Homes and Gardens® Real Estate.

The national survey, conducted among 1,001 Americans, ages 18 to 35, reveal 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.

The survey’s findings show that 75 percent of these two younger generations of potential homebuyers are not deterred from home buying and believe owning a home is a key indicator of success. 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.

“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, in a statement. “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.”

Key findings from the Better Homes and Gardens Real Estate survey include:

• Not the “me” generation: 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: Sixty-nine 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: 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: Gen X and Y want to make sure they are ready 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.

“Many people have misconceptions about the priorities, the work ethic and the grit of Generations X and Y,” said Chris. “Better Homes and Gardens Real Estate sees a group of people who are wise, proactive and are taking a strategic approach to their future. For example, over the last few years high rental statistics have been attributed to an apparent decreased interest in homeownership. Our findings indicate this is not true for Gen X and Gen Y.”