We know that the 2020’s have not been anything shy of a sellers market, and there is data to indicate just who the 2020 buyer is, where they’re going, and how they’re going to get there.
Who Is Moving and Who is Selling?
With the housing market booming, who is buying homes? According to Statista the largest demographic to own a home is 65 and over (79%), followed by 55-64 year olds (75.7%), and then 45-54 (69.4%). Younger age ranges are up against quite a few obstacles such as increased student loan payments, the current housing shortage, as well as less financial stability (i.e the inability to offer over asking price, to pay in cash etc.). According to the NAR Gen X makes up the highest percentage of home buyers at 24%, followed by Milenials at 23%, and then ‘Young Boomers’ (born 1955-1964) at 18%. Top sellers are reported as Gen X at 25%, ‘Young Boomers’ at 22%, and ‘Older Boomers’ (born 1946-1954) at 18%. 62% of 2021 homebuyers are married, with 18% as single females, 9% single males, and 9% unmarried couples. 33% of buyers have children under the age of 18, and 12% of buyers are purchasing for multi-generational homes to take care of aging parents, or have a child over the age of 18 moving back home. The primary reason for purchasing a home in 2021 for age groups under 66 years old was to own a home of their own.
Where They’re Going
According to Bloomberg mover’s aren’t going far. Statistics show that 84% of those moving in 2021 are moving within the same metropolitan area, with an additional 7.5% moving within the same state. That leaves just 6% of movers making a ‘major’ move. The pandemic had a clear influence on 2021 home buyers, with a decrease flow into cities & metropolitan areas, and an influx of movers to more rural/suburban locations (i.e for every 84 people who moved to New York City in 2021, 84 left). Some major U.S cities to see a decrease in movers were Sam Francisco (-8%), Chicago (-2%), New York City (-10%), and Los Angeles (-4%). Smaller scale cities such as Ann Arbor, MI, Stockton, CA, and Wichita Falls, TX all saw increases. Top inbound states in 2020 according to United Van Lines were South Carolina (+64%), Oregon (+63%), South Dakota (+62%) and Arizona (+62%), all areas with considerable outdoor activities amidst the COVID-19 pandemic.