What’s the deal with Generation X homebuyers? Are they finally over the fears caused by the Bubble Bursting in 2006 and ready to buy again?
If you’ve ever been in the same room with a Generation X member and someone from their parent generation, a Baby Boomer, you know these two generations differ greatly.
They have different attitudes, characteristics and priorities. This results in different lifestyle choices and buying behaviors. Not every member of each group is the same. But they generally share some generational traits that affect what homes they buy, when and why.
Who Is Generation X?
The X Generation is made up of adults born between 1965 and 1979. In 2021, all of the Gen Xers have or will turn ages between 42 and 56. They currently make up 24% of the homebuyers in America and 25% of the country’s sellers.
How Gen X Handled the 2006 Real Estate Market Crash
When the Bubble Burst back in 2006, the Gen Xers were hit hard. Most of us were just starting to venture out into the real estate market, buying homes of our own and purchasing investment properties when everything hit the fan.
So many Gen X homeowners lost their homes to foreclosures or lost a lot of money dealing with short sales just trying to get the properties off their hands. This was mostly due to the Baby Boomer-infused financing scheme known as No Documentation or No Doc Loans.
When the market started fumbling, mortgage rates skyrocketed. This left mortgage payers dishing out two… three… sometimes four times their original payments each month virtually overnight.
These sudden mortgage increases made it almost impossible for most homeowners to keep their homes. So, most went into default and lost almost half of their wealth during the recession. This left the Atlanta Metropolitan area filled with renters and very few buyers.
Generation X Former Homeowners: Recovering from the Bursted Bubble
A very large portion of Gen Xers has been renting ever since the bubble burst. It’s much easier for us to rent than it is to buy. Why?
The main reason we tend to rent over buying in recent years is COST!
We’ve had over a decade to recover from the 2006 market crash and eventual recovery. Many of us are thinking about buying again. And right now, Atlanta is one of the hottest markets for Generation X buyers.
Generation X Homebuyer Trends and Stats
Here are seven Gen X real estate trends for you to think about as a member of our generation:
- Second largest group of home buyers, making up 24% of all buyers in 2020 and so far in 2021
- Highest earning buyers with a 2019 median income of $113,300
- Bought the second-most costly homes with median prices of $305,000
- Purchased the largest homes with median sizes at 2,100 square feet
- Generation most likely to buy multi-generational homes at 18%
- The most ethnically and racially diverse population of buyers with 23% identifying as a race other than Caucasian or White
- Largest generation to have kids still living at home with them
Generation X Preferred Real Estate Locations
So, what are the top priorities for homeowners and potential buyers of Generation X for 2021? That would be LOCATION. We want to be closer to our jobs so we don’t have to commute. And those of us with kids and grandkids want to live near good schools.
We’re turning away from noisy cities and urban locations and looking more toward convenient suburbs. Now, we Gen Xers are in our 40s and 50s, so we prefer a quieter life than our earlier years. And we want convenient access to local activities, food and entertainment.
And when it comes to cities of choice, Gen X buyers are flocking to Atlanta from all over the country. They want to be part of the Mecca known as ATL and all it has to offer. Atlantans are staying put, knowing their city is a prime location to live in these days.
Gen X Homebuyers’ Amenities Preferences
Unlike our parent generation, the Baby Boomers, most Gen X homebuyers are not searching for luxury homes with Olympic-sized swimming pools and guest houses in the back. We are different from our parents because we were raised during the rise of technology.
Some of the home amenities Gen Xers tend to want most include:
- Breakfast Bars
- Natural Light
- Second-Floor Lofts
- Upstairs Laundry Rooms
How Are Gen X Members Buying Homes?
Today, Gen Xers still hire local real estate agents to help them find homes they love and get through the homebuying process. They are the top resources for this generation of career-minded people, small business owners and entrepreneurs who want to buy homes.
Being generally tech-savvy, we turn to the internet to start our home searches. But we still enlist the help of buyers’ agents to help us get appointments to view the properties and negotiate the sale terms and prices.
Gen X Atlanta Homebuyers
If you’re from Generation X and want to buy a home in Atlanta, Kereen Henry is The Closer you need. Trust this Georgia state-licensed REALTOR® to help you understand the buying process as you go through it.
Already have a pre-qualification letter from your lender? Then, complete her Buyer Questionnaire to get the process started.
If not, use the calendar below to schedule a one-on-one chat with Kereen Henry to discuss your needs and wants. She also has access to some unconventional lending tactics that could help secure you a home loan fast.