Primary marketYounger Homebuyers Drive The Market, Says NAR
The median age (36) of homebuyers in 2001 was three years younger than in 1999 (39), according to the new "2002 National Association of REALTORS(R) Profile of Home Buyers and Sellers." Other nuggets of interest may signal trends in homebuying, that younger homebuyers and first-time homebuyers will continue to drive the housing market.
According to the Profile, first-time homebuyers represent a significant portion of the market (42 percent of homebuyers.) The first-time homebuyer was responsible for approximately 2,916,000 home sales last year. The median age is 31 - ten years younger than the repeat buyer. The median income was $60,300, $17,600 lower than the income of the repeat buyer.
Of sociological interest, there was a sharp rise (from seven percent in 1999 to 11 percent in 2001) in the number of homebuyers who had lived with their parents or friends or relatives before buying a home. The number one reason given for buying a home was to "own a home of my own." Also, the typical homebuyer (54 percent) did not have children under the age of 18 living at home, while 46 percent had one or more, this despite the fact that married couples (68 percent) made up the majority of homebuyers. Singles took a slight decline from 18 percent in 1999 to 15 percent of homebuyers in 2001.
Where older buyers took the lead was in the purchase of second homes. Married couples constituted 72 percent of second homebuyers, and were a median age of 46 years, ten years older than the typical homebuyer. They also, not surprisingly, earned more money - $77,700 in 2001.
Neighborhood (74 percent) and price (58 percent) were the most cited factors in choosing a home. Of those households with children, less than half cited schools as a factor in their choice. Schools and work tied at 29 percent as factors for choosing a home, with friends/family (23 percent), parks and recreation (15 percent) and shopping (11 percent) following. Other factors included planned community (9 percent), entertainment (8 percent), potential rental income (6 percent), public transportation (4 percent) and health facilities(2 percent).
Both first-time homebuyers and repeat buyers preferred the suburbs, with 44 percent purchasing their homes in the city compared to 29 percent of repeat buyers.
Over 20 percent of homebuyers moved further than 50 miles, while only nine percent of first-time homebuyers moved that far. The typical homebuyer moved seven miles in 2001, closer to home than the nine miles they moved in 1999.