While smaller than the generations before and after them, those who belong to Generation X appear to be the next wave of homebuyers, according to information presented by the National Association of Homebuilders (NAHB).
Generation X is roughly defined as the population that is currently between 31 and 45 years old. This generation has had a smaller impact on trends and statistics as their numbers are so much smaller than the Baby Boomers before them. But, as this age group enters senior level and executive positions in force, they will have more expendable income and desires to move upward, which should send them into the housing market more readily.
The Baby Boomers, the large group that preceeds Gen X, has been the most powerful force in home ownership for many years. But as that generation enters retirement, future homebuying will begin to wane. Some Baby Boomers will continue to move upward, some will downsize, while many will simply remain in their current homes. Despite the huge number of Baby Boomers, their homebuying desires are decreasing.
Generation Y, the group just younger than Gen X, is facing entirely different challenges with respect to the housing market. With less time in their jobs, they aren’t as far along in the housing cycle. Many have put off purchasing their first homes as the economy has worked through the bust. Another large subset haven’t established the credit scores necessary to purchase a home in today’s tougher lending environment. And still more have not been able to save up the required down payment.
That leaves Generation X. According to the press release from the NAHB, Generation X represents just 32% of the potential homebuyers in this country but is being looked at as the next big buying demographic. While their birth numbers in the U.S. are smaller than the Baby Boomers and Generation Y, this age group is also benefitting from immigration. Generation X has been growing due to the number of people moving to this country who fit within that age range.
To read the complete press release from the NAHB, please click here.