www.nahb.org/news_details.aspx?sectionID=137&newsID=1496
Printer Friendly Version Printer Friendly Young Buyers Are Setting Trends In The New-Home Marketplace, Say Census A nd NAHB Data May 19, 2005 - Households headed by Generation X-ers and members of the s o-called echo-boom purchased 55 percent of all newly built homes sold in 2003 and are fast becoming the trendsetters in US housing markets, according to Census reports and newly analyzed buyer preferences data fr om the National Association of Home Builders (NAHB). A new generation is viewing the housing market from an entirely differen t perspective than the baby boomers whove traditionally dominated indus try trends, said NAHB Executive Vice President and CEO Jerry Howard. T heyre techno-savvy and are more likely to be house-shopping on the Inte rnet. Gen-Xers in particular are wielding their buying power to shape todays n ew-home characteristics and market trends. They and younger buyers were responsible for more than half of all new-home purchases in 2003, and a re twice as likely to purchase new homes in the immediate future as baby boomers and seniors, Howard said. American Housing Survey (AHS) data from the US Commerce Department show s that, while households headed by those aged 27-40 (the Gen-X generat ion) accounted for 28 percent of all US households in 2003, they were responsible for fully 49 percent of new-home purchases that year. Anot her 6 percent of newly built homes were purchased by echo-boomers (born after 1979), 33 percent were purchased by baby boomers and 12 percent we re purchased by seniors aged 60 and up. Meanwhile, NAHB research on consumer preferences indicates that 37 percen t of Gen-Xers and 27 percent of echo boomers intend to buy homes in the next two years, compared to just 13 percent of baby boomers and 6 percen t of seniors. What does this mean for the next generation of home building? Previously there was speculation that younger buyers would be more thrifty than th eir parents with respect to their housing choices, but our research show s just the opposite is true, said NAHB Director of Research Gopal Ahluw alia. In fact, many overwhelmingly favored options support the idea of a move- up mentality for younger buyers. For example, both echo boomers and Gen -Xers say they would like to have a home that is about 50 percent larger than their current residence. This compares to seniors and baby boomers , who want only 17 percent and 22 percent more space, respectively. Similarly, 91 percent of echo-boomers say they would like their next home purchase to be a single-family detached home, versus the 46 percent who currently live in that kind of house. Seniors, on the other hand, are m ore likely than any other group to want to buy a townhouse rather than a single-family home though most still prefer the detached option. Other housing preferences of younger buyers also show the inclination for a more luxurious lifestyle. For example, 61 percent of echo-boomers and 67 percent of Gen-Xers say they would prefer to have four or more bedro oms in their next house, compared to 40 percent of baby boomers and 26 p ercent of seniors. Similarly, younger buyers show a much greater prefere nce for high ceilings that lend a greater sense of volume and spaciousne ss to a home. Fully 73 percent and 77 percent of echo-boomers and Gen-Xers, respectivel y, say they want nine-foot or higher ceilings on the first floor, compar ed to 65 percent of baby boomers and just 54 percent of seniors. In term s of high-tech amenities, echo-boomers are more likely than any others t o want a home theater, automated lighting controls and a built-in securi ty system. In all, we find that the preferences of younger buyers tend toward great er space and more sophisticated amenities than those of their forebears, said Howard. Incorporating these preferences in homes that new buyers can afford will be our industrys challenge going forward, just as trac king these evolving trends will be an ongoing challenge for NAHB.
|
http://csua.com/feed/