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New Homes Purchased by a New Generation
According to Census reports and the National
Association of Home Builders analysis, Generation Xers and Echo-boomers are
buying over half of all new homes.
"A new generation is viewing the housing market from an entirely different
perspective than the baby boomers who have traditionally dominated industry
trends," said NAHB Executive Vice President and CEO Jerry Howard. "They're
techno-savvy and are more likely to be house-shopping on the Internet. They
have a strong awareness of all their options."
American Housing Survey data from the U.S. Commerce Department shows that
28% of all households are headed by those aged 27-40 in 2003, but they
accounted for 49% of all new construction purchases for the year. The
Echo-boomers (born after 1979) accounted for 6% of the new construction
purchases while baby boomers and seniors accounted for 33% and 12%
respectively.
Just as important, 37% of Gen-Xers and 27% of Echo-boomers plan on buying
homes in the next two years while 13% of Baby Boomers and 6% of seniors say
the same thing. The homes that these Gen-Xers and Echo-boomers want to buy
are bigger and better than the ones they own right now. These buyers want
homes that are 50% larger than the ones they own now and 91% want homes that
are single family detached. Over 60% want homes with 4 bedrooms or more as
well as the latest high-tech amenities including, automated lighting, home
theater space, and a built-in security system.
"In all, we find that the preferences of younger buyers tend toward greater
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 industry’s challenge."
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