As generations age and reach new phases in life, their real estate needs change, and so too do the dynamics of the typical homebuyer every year. Not only is it interesting to look at the numbers, but it’s also essential to planning a marketing strategy that will be effective and fully understanding your buyers.
So, what does the average homebuyer look like today?
Data collected in 2019 from Statista.com shows the largest segment of homebuyers today has an income of around $100,000 to $129,999. The largest age segment among buyers with this income – at 18 percent – is 30 to 39 years old while the second largest – at 17 percent – is 22 to 29 years old.
How Much Should They Have?
So, you’re probably looking at a homebuyer in the 22 to 39 age range with a salary of over $100,000, but that’s not necessarily what a homebuyer’s salary should be. HSH.com collected data from the National Association of Realtors 2020 third-quarter data for median home prices to determine what a prospective homebuyer’s income should be to purchase a home in the 50 largest metropolitan areas across the country.
For cities like New York, Boston, Los Angeles, and Seattle, you’ll need that salary of over $100,000, but for cities like San Francisco and San Jose, you’re looking at needing a salary of close to, or over, $200,000. The national average though is just over $60,000.
Who is Buying and Who is Selling?
The National Association of Realtors has collected some fantastic stats on today’s homebuyers (as of 2020). One interesting segment shows each generation and how much of the generation are buying versus selling. So, we’ve established a large segment of homebuyers are Millennials or Gen. Y aged 22 to 39. For this generational segment, 25 percent of older Gen. Y and Millennials are homebuyers, and 19 percent are sellers.
In general, first-time homebuyers (for 2020) made up 33 percent of all home buyers. Of those aged 30 to 39, 52 percent were first-time buyers, and 88 percent of those aged 29 or younger were first-time buyers. The next group with the most first-time buyers were those aged 40 to 54.
It’s important to note that while many people 29 and under are first time home buyers, the largest group of home buyers are those aged 30 to 39 (with an average age of 34), followed by those aged 40 to 54 (with an average age of 47).
Yes, the very large majority of home buyers are couples. That goes without saying. However, it’s important to note the next largest groups. From age 22 to 39, you’ll find the next most common buyers to be those in a relationship, but unmarried. The next largest group of buyers, from age 40-plus, is single women. In fact, if you look at the chart titled “Adult Composition of Home Buyer Households” included in NAR’s data you’ll see that when looking at buyers of all ages, the second largest group of buyers are single women, followed by a tie between single men and unmarried couples. Overall, single female buyers made up more of the home buyers in any age bracket than single men and made up the largest segment of buyers over the age of 40 (after married couples).
Did Any of This Surprise You?
Were you expecting different numbers, or did you already know all of this? Statistics aren’t just fun to read and they aren’t just useful for pulling out a fun fact with friends. Demographic information like this is vital to marketing to your targeted audience. It tells you who you’re talking to and what their interests are so you can better tailor your messages.
Another great resource for targeting the right audience with your message is The Warren Lead Stream. Get reliable, high-quality leads, that’s have opted in to hearing from companies like yours – meaning they are looking for the services you have to offer. These prospects are highly responsive, have goals aligned with your business objectives, and are updated frequently to ensure you’re getting the most accurate information possible. Click the link, let us know what you’re looking for, and a data specialist will be in touch to get you started.