Too Many Boomers Still Own the Homes Millennials Want to Buy Although a lack of existing homes for sale and affordability have made it difficult for many younger adults to purchase a home, an underlying challenge is the homeowners older than 55 who own almost 42 million homes, or 53%, of all those owner-occupied. Since 2006, 2.8 million more households own a home; however, ownership among adults 55+ increased 9.6 million while ownership among adults younger than 45 decreased 4.3 million. Another telling statistic is adults 65 to 69 years of age owned 5 million homes during 2006, by 2016, it increased to 7.6 million, or 50% more. Because people are living longer, more of these older adults still own their homes and expect to remain in them.

Not the Best Time to Buy a Home The general economy may be very good, but too many people have individual challenges to owning a home, which is why 61% of participants in the latest Gallup poll (April 2019) said it wasn’t a good time to buy a home, the lowest percentage since 2008. Not surprisingly, the percentage of adults 18–34 who think this is a good time to buy a home decreased 14 points from 2014, or 65% and 51%, respectively, compared to the national decrease of 13%, from 74% to 61%, respectively. Another part of the equation, which would have been unthinkable during the previous generation, is it is now more affordable to rent a three-bedroom home than buy one in 59% of all US housing markets, or 442 of 755 US counties.

Today’s Home Sellers Are a Diverse Lot According to the National Association of REALTORS®’ 2019 Home Buyer and Seller Generational Trends report, the largest percentage (25%) of home sellers were 39 to 53 years of age, with Older Boomers (64– 72), 22%, and Younger Boomers (54–63), 21%. Unsurprisingly, the largest percentage of all sellers, or 14%, wanted to sell their home because it was too small, and this was particularly the case with those 29– 38, 35%, and 39–53, 20%. Among homeowners 64–72, the primary reason was to be closer to friends or family, at 26%, with moving due to retirement second, at 16%. For homeowners 73–93, being closer to friends or family was first, at 30%, but home is too large was second, at 20%.

Owning a Home of Their Own Drives Young Home Buyers As has been the case for generations and decades, younger adults are the largest groups of home buyers, or 26% of older Millennials and 24% of Gen Xers, although 18% of younger Boomers and 14% of older Boomers were home buyers as of June 2018. The largest percentage of all homebuyers, or 15%, had a household income of $100,000–$124,999, as well as those 29–38 and 39–53, while for those 28 and younger, it was $55,000–$64,999, or 16%, and $65,000–$74,999, 13%. “The desire to own a home of my own” was the primary reason for purchasing a home among all buyers, at 29%, which increased to 60% for those 28 and younger while “desire to be closer to family/friends/relatives” was first for 24.5% of older buyers.

The Internet Dominates Home Buyers’ Searches With so many consumer purchases starting with an online search, it isn’t surprising 44% of home buyers said their first step was “looking online for properties for sale” – and it was the first step for all age groups, peaking among those 39–53, at 47%. Half of all home buyers said they found the home they purchased on the Internet, but it was 62% for those 28 and younger and 29–38. “Real estate agent” was only first for the oldest age cohort, or 73–93, at 38%, although 30% found it on the Internet. 76% of all home buyers found a home via a mobile app, but just 17% found an agent. Buyers 29–38 were the largest age group to find a home via a mobile app, or 81%, but 23% of buyers 28 and younger were the largest to use it to find an agent, or 23%.

Americans on the Move North American Moving Services’ 2018 US Migration Report states that Idaho is the #1 inbound state for the third time during the past 4 years, at 72%; followed by Arizona, 67%, South Carolina, 63%; Tennessee, 62%; and North Carolina 61%. The top outbound states were rather predictable: Illinois, 69%; New Jersey, 63%; Pennsylvania, 61%; and Maryland, 58%; however, California was second, at 64%, which is likely attributable to the cost of residential real estate. Madison, WI was where the most Millennials moved during 2017, or 75%; followed by Grand Rapids/Wyoming, MI, 73%; Seattle/Tacoma/Bellevue, WA, 70%; and Durham/Chapel Hill, NC, 68%.

Advertising Strategies As indicated in the companion Profiler, Real Estate Market 2019, TV should be a part of local realtors’ advertising media mix, to establish and strengthen their name recognition and reach the large percentages of older adults buying and selling homes. Local realtors may want to consider specializing in finding homes for multi-generation families and creating one-page “success stories” about specific clients who are pleased with the property their realtor found for them and the family life it provides. Another specialty that will distinguish a local realtor from others is senior-related housing. TV is the perfect media to use to create and build this unique brand, especially because of the large percentage of older Americans who are traditional TV viewers.

New Media Strategies Realtors use of the Internet, particularly in the mobile channel, is enhanced and optimized when combined with TV to strengthen local realtors’ name recognition. Local realtors can use social media to “humanize” their professionalism by sharing appropriate stories from their personal lives and a possible weekly video journal of what they learned and/or experienced that would be of interest and value to sellers and buyers. Realtors working in Millennials’ most popular places on page 3 of the Profiler can ask them to share why they chose the area with short video stories, with realtors adding a segment or explanation of how they can help Millennials buy a home in the community.