Even in the light of the pandemic inventory shortage, buyers continue to come out in droves, specifically Millennials and Generation Xers.
In addition to the inventory shortages, the new home buyer is searching out for larger homes to accommodate the work-from-home economy. Currently, Millennials comprise the largest share of this recent surge, reported to be 37%.
According to a recently published report by the National Association of Realtors, Millennials have been the largest share of home buyers since the 2014 report published by the NAR.
Multi-generational Home Purchases
For 2020, this study reported that 18% of home buyers between the ages of 41 and 65 purchased a multi-generational home. A multi-generational home is defined as one in which adult siblings, adult children, parents or grandparents will reside.
There are some who believe that the trend to purchase multi-generational homes is due to the general shortage of homes for sale on the market in general. Over half of all home buyers reported difficulty in finding the right property to accommodate their criteria for a home purchase.
An interesting demographic published was that 20% of home buyers between the ages of 22 and 30 were unmarried. Another similar metric is found in which 22% of home buyers between the ages of 66 and 74 were single women.
Approximately 88% of all buyers have relied upon a real estate agent for their information source during the process of the home search. Millennials are more inclined to rely upon a real estate agent; 91% relied upon such an agent. Agents are still relied upon often to assist in the terms of the sale and with price negotiations, which currently usually involves bidding wars.