Tag Archive for: Gen-X

It’s often said that Gen X, the generation whose ages are (presently) typically in their mid 40s to late 50s, grew up when they hit the age of ten and yet remain that “same age” even into their 50s. It’s the generation of the un-phased, as I like to refer to them. They’re resourceful and independent. This chunk of the population didn’t have much supervision growing up and perhaps that’s why they have a whatever, non-stress inducing approach to challenges that come their way.

As you’ve probably guessed, this generation has a balanced approach to life. Gen X has experienced significant shifts in technology with the rise of the Internet. They’re very racial diverse. They desire to have flexibility in their careers. That’s why it should come as no surprise that most people seeking job-related relocation come from Gen X.* Furthermore, they’ve emerged from the recession of the early 80s and even faced the housing market crash. This has no doubt shaped their attitudes to homeownership over recent years.

And Gen X is really impacting the housing market! In the National Association of REALTORS latest generational trends report, this segment of our population accounts for the second largest share of sellers at 23% (second only to Young Boomers) and the second largest share of buyers at 24% (second only to Millennials). The report also goes on to show that those born roughly between 1965 and 1980 rank highest of any of the age groups when it comes to purchasing multi-generational homes.* These are dwellings where two or more generations live, often including the care of aging parents, or even in some situations, children who are coming back home to roost.

 

Let’s take a birds-eye approach to how Gen X is grappling with changes in real estate. Here are 4 ways they’re fully impacting the housing market:

Crucial Caregivers

Many in this segment of the population find themselves taking upon an important caregiver role within their families. They’re both supporting their aging parents in addition to their own children. This “sandwich generation” invests or purchases real estate with this paradigm in mind. As stated above multi-generational properties become a preference for some. It’s functional and it’s practical. The caregiving nature of Gen X lends itself to investment activity. They’re more likely, than some other age groups, to buy rental properties and multi-family homes. Since COVID, multi-generation properties have grown in popularity. Coming out of the pandemic, some of our thought processes changed and influenced our habits. Many cared for their parents during the pandemic ensuring their health and safety and within a short timeframe naturally brought them into their homes, if needed.

Targeting Suburban Areas

Gen X has their sights set on suburban real estate markets in 2024. A trend that has been exacerbated since the pandemic is a drifting away from more populous regions to suburban ones. While highly concentrated areas of people certainly play a role in this migration, a preference for more space and better school districts are the driving force behind it. They also seek family-friendly surroundings when relocating. There are things to consider when buying a home, but space, school and family are creating avenues for change in real estate. Even in the Greater Scranton area, this segment of our population is prioritizing things like education and education-related spending. They’re seeking out suburban neighborhoods that are close to suitable healthcare for their family. Transitioning to the suburbs can produce opportunities for savings and with this more disposable income. Some even value family experiences, such as vacations, which may not have been previously feasible due to expenses of their previous living situation.

Technological Influence

While this demographic didn’t grow up with much tech, they sure have learned how to incorporate it into their daily lives. Afterall, they were the first generation to embrace digital technology with the rise of personal computers, and of course, the Internet! Gen Xers still recall the retro AOL dial up, sign on sound as if it was only yesterday. This generation is invested in tech, gadgets, streaming services and gaming platforms. They learned it from day one, while over the years the real estate industry wasn’t as proactive as they should have been and had to evolve technologically. In fact, this industry was one of the slowest adapters of driving innovation to their websites and offerings, but that has changed in a large part due to Gen X as well as Millennials. Changes in technology continue to develop with this generation in mind as they bridge the gap between the Boomers and Gen Y.

Market Stabilizers

Generally speaking, Gen X is value-conscious and this reflects in their purchasing decisions, even big ones, which include real estate. They become an establishing force amid younger generations who haven’t secured themselves financially quite yet. For Millennials and Gen Z, affordability is often a concern or issue. Yet Gen X is more grounded in their careers. They’ve already made the mistakes younger generations are now making. They’ve been able to put away more into their savings or create a nest egg for themselves. Because of these things, this group has contributed to a more balanced real estate market in recent years.

 

In summary, Generation X are essential consumers of real estate investment and services today. They’re actively impacting the housing market. Many are homeowners, who are paying off mortgages. Some are investors, either acting as landlords or overseeing the wellbeing of their family in a more multi-generational setting. Whatever the case might be, this generation is playing a crucial role in both homebuying and selling. Furthermore, they’re producing positive effects for their peers, who many of whom they’re sandwiched between.

 

* 2024 NAR Home Buyers & Sellers Generational Trends

Over a decade ago, the Great Recession’s impact lingered, and mortgage lenders tightened requirements, responding to a wave of foreclosures. Housing prices fell, yet millennials—aged 13 to 28 at the time—were largely absent from the market. Many were still in school and burdened by rising college debt. However, in the past decade, both home prices and millennial home ownership have steadily increased. What effect has this had on real estate?

In his recent article, Shawn Tully from Fortune discusses how the millennial generation, despite facing economic hurdles, has managed to shift the housing landscape. Although housing was more affordable compared to the previous decade, millennials were hindered by financial instability and, until 2017, were often dubbed the “lost generation” of homeownership. Tully notes, “Millennials had loads of college debt, and many had bad credit,” resulting in limited market participation until just a few years ago. However, by 2021, millennials made a substantial impact, accounting for almost half of all new home purchases. Despite this shift, under-construction rates, high prices, and rising interest rates now appear to be favoring more affluent buyers, such as Gen Xers and Baby Boomers, potentially leading to a decrease in millennial homeownership rates.

This trend raises concerns for housing markets across the U.S., particularly in high-cost states like California, New York, and Florida, where rising property prices continue to shut out first-time buyers, especially millennials. Fortunately, not all millennials are facing these challenges. In Northeastern Pennsylvania, this “lost generation” is establishing itself within the first-time homebuyer market, leveraging more affordable conditions and creating ripples in local real estate.

In Greater Scranton, where absorption rates—the measure of how fast homes sell in a market—stand at 6.34 year-to-date and 5.82 year-over-year, the area is slipping into a seller’s market. Rates of 6 to 9 months indicate balance, while 3 to 6 months reflect a seller’s market, suggesting that millennials’ increased purchasing activity has been a key driver in the area’s real estate shift. Now, millennials are securing homes, establishing roots, and boosting local growth.

As the largest generational group in the U.S., millennials are paving the way toward homeownership, with their stability and family formation aiding in their market participation, especially in areas like Northeastern PA. This trend may bring long-term economic growth to regions they are helping shape, proving that the “lost generation” may be found—one home at a time.