Younger Florida Homebuyers Have Different Buying Strategies

Younger Florida Homebuyers Have Different Buying StrategiesPurchasing a home is a huge goal and aspiration for many Americans because it is an investment that builds wealth and provides freedom of choice to do what you want with your living space. Turning the goal of owning a home from a dream to a reality can be challenging for many Florida homebuyers, especially in younger generations, and especially in the last few years with a rollercoaster of extremes in the housing market. 

Millennials and Generation Z have had their fair share of challenges for a home purchase, the most challenging is buying a first home. These younger generations have had to find different methods and strategies for purchasing a home in the last few years. Take a look at how younger homebuyers are navigating the real estate market and employing different tactics to become homeowners. 

An Increase in Solo and Co-Buying

Traditionally the largest group of homebuyers in America have been married couples. This has recently shifted with a larger number of single buyers purchasing a home on their own. 42% of Millennial buyers are searching to purchase a home by themselves according to a recent survey taken by Bankrate. Millennials have also been opting to purchase a home with a trusted friend or relative to bring two incomes into a homebuying scenario. About 10% of millennials are using a co-buying strategy as compared to 3% of Americans in the Gen X generation and 1% of buyers in the Baby Boomer generation.

Members of Gen Z are still pretty young but they are entering the homebuying scene and several are choosing to purchase a home solo instead of waiting to start a family. A recent study conducted by the National Association of Realtors reported that 51% of homebuyers in Gen Z are single and 31% of them are female. 59% of Gen Z homebuyers are reported to have considered purchasing a home with someone else as an option. This option of co-buying with a non-romantic friend or family member has shown that younger buyers are willing to look at alternative ways of becoming homeowners to combat affordability.

Down Payment

One of the biggest challenges of purchasing a home for a growing number of buyers is coming up with a down payment. This is more of a challenge for first-time homebuyers so it makes sense that younger homebuyers would be facing this challenge.  34% of homebuyers shared in a recent survey conducted by Redfin that a down payment is their biggest hurdle in purchasing a home. Many homebuyers use the good old tried and true method of saving for a down payment, but some younger buyers have started to employ different strategies to help them come up with the large sum of cash they need for a down payment. Research shows that 39% of hopeful Gen Z and Millennial homebuyers are taking on a second job to save up money faster. 36% of buyers in younger generations have been using the help of friends and family to make a down payment on a home. 

Gregg Camp of Property in Santa Cruz shares this in a blog post about current homebuyer downpayment tactics:

"There are more options available to homebuyers that do not require the 20% down payment. When looking at the averages of what recent home buyers put down numbers have shown that the average first-time homebuyer in America put down just 6% on their home purchase. When it comes to an average for every home purchase recently the number is 14% of the purchase price put for it as a down payment."

Millennials have become the largest homebuying population in the country for the last couple of years. It is important to keep in mind if you are selling a property or a home to know what buyers are looking for in homes to help you strategically and successfully sell your home. Millennial buyers are waiting longer to purchase homes in their life starting around the age of 35 and Gen Z buyers are actually looking to get a start on their adult life and building wealth with the average age of purchasing a home at 25. Millennial buyers are in a later stage of their adult life where they are most often looking to settle into larger suburban-style homes that are conducive to family life, whereas Gen Z buyers are looking to get a jump on wealth building and purchasing that great starter home right out of college.

Whether you are looking to buy or sell a home no matter what your price point our strategy in Punta Gorda I am here to help. Contact me anytime with any Punta Gorda real estate needs. I'm highly knowledgeable in the current conditions of the real estate market and am here to help you with your real estate goals.

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