{"id":5222,"date":"2021-09-28T09:55:51","date_gmt":"2021-09-28T16:55:51","guid":{"rendered":"https:\/\/www.realtyexecutives.com\/blog\/?p=5222"},"modified":"2021-09-28T09:55:53","modified_gmt":"2021-09-28T16:55:53","slug":"which-demographics-are-driving-homeownership-in-2021","status":"publish","type":"post","link":"https:\/\/www.realtyexecutives.com\/blog\/which-demographics-are-driving-homeownership-in-2021","title":{"rendered":"Which Demographics Are Driving Homeownership in 2021?"},"content":{"rendered":"\n
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The past year has been \u2014 excuse us \u2014\nunprecedented for many Americans. With the pandemic still influencing\nAmericans\u2019 ability to work, move and navigate life, it\u2019s no surprise that it is\nalso shaping homeownership trends in 2021. However, other factors, including\nchanging family dynamics and generational shifts, are also making a mark on\nhome purchases this year.<\/p>\n\n\n\n

Looking for an overview? Here are some of\nthe top demographics driving the market in 2021. <\/p>\n\n\n\n\n\n\n\n

1. Millennials<\/h2>\n\n\n\n

While exact delineations are debated,\nMillennials were born roughly between 1981 and 1996<\/a>. They are the prime age to become homebuyers, especially first-time\nones. This isn\u2019t a surprise, of course \u2014 people in their 20s and 30s typically\nbecome settled in their careers and may start a family, making homeownership\nmore attractive for many.<\/p>\n\n\n\n

This trend is even more striking now\nbecause Millennials have waited to buy homes in the past. Affordability and\nstudent debt were common factors here. Now, many have grown in their careers\nand have a higher income. The average millennial has a median net worth<\/a> of $51,100, which means they\u2018re overall less likely to live paycheck\nto paycheck.<\/p>\n\n\n\n

The pandemic was another factor driving millennials to own a house. During this time, many young adults had to move back home with their parents. It was also harder for apartment-dwellers to quarantine in smaller spaces. Now, despite the pandemic contributing to a seller\u2019s market, current low interest rates have enticed many buyers. <\/p>\n\n\n\n

As millennials start searching for homes, they are changing the process. Sellers are using more technology to satisfy buyers. Many millennials look for information online<\/a> instead of in person, which means real estate professionals committed to online growth will have an advantage. <\/p>\n\n\n\n

2. First-Time Buyers<\/h2>\n\n\n\n

In the same line of thought, 2021 is also a\ntime when more first-time buyers are entering the market. This is, of course,\nan expected market phenomenon. However, the events of the past year have also\nimpacted trends for this demographic.<\/p>\n\n\n\n

Many buyers waited to purchase a home until\nthey financially recovered from the pandemic or felt their employment was\nstabilized. The instability meant many weren\u2019t able to save for a down payment<\/a>, but are now reaping the benefits of a recovering labor market. <\/p>\n\n\n\n

Additionally, some first-time buyers are in\ntheir 30s and 40s and have delayed purchasing homes until more recently.\nToday\u2019s first-time homebuyers aren\u2019t necessarily the youngest buyers, but those\nfacing job, location, or family changes that shifted them away from renting for\nthe first time.<\/p>\n\n\n\n

3. Multiple Generations<\/h2>\n\n\n\n

Multigenerational living has been on the rise in recent years<\/a>, and the trend hasn\u2019t shifted in 2021. There are a variety of reasons\nwhy families are choosing to move under one roof.<\/p>\n\n\n\n

Some homebuyers look for houses to\naccommodate their aging parents. This is especially important for elderly\nfamily members who need round-the-clock care. It also allows younger\ngenerations to bond with their parents while avoiding the costs of a nursing\nhome.<\/p>\n\n\n\n

Moving back home also has financial\nbenefits for younger adults. Living at home allows them to save money while\npaying off student loans or access to familial childcare for young children.<\/p>\n\n\n\n

4. Ongoing Racial Inequality<\/h2>\n\n\n\n

In 2019, Black homeownership dropped 40.6%<\/a>, down 7% from a decade earlier. Black Americans are disproportionately\nless likely to have the same levels of wealth and income as white Americans for\na variety of systemic reasons. <\/p>\n\n\n\n

For one, redlining and other historical and ongoing barriers<\/a> to economic success have long prevented Black households from growing\nwealth and passing it down to younger generations at the same rate white Americans\ncould.<\/p>\n\n\n\n

What does this mean for today\u2019s housing\nmarket? As housing prices rise, it\u2019s harder for Black homebuyers to break into\nthe market. The pandemic also made a significant impact on financial\nstability.  In 2021, efforts to reduce\neconomic inequalities in our financial recovery will shape who is entering the\nhousing market.<\/p>\n\n\n\n

5. Young Families<\/h2>\n\n\n\n

Many buyers with young children are looking for homes<\/a> as opposed to apartments. Many parents appreciate having outdoor areas\nfor their kids to explore, and houses usually come with some type of backyard. <\/p>\n\n\n\n

Younger children also tend to have more\nstuff, such as toys, which takes up more space. Homes often allow for more\nstorage opportunities than other residences. However, kids over 18 are more\nlikely to be in college, so they aren\u2019t home year-round. This means parents\nwith older children can look for smaller spaces, downsizing or renting instead\nof looking for larger homes. <\/p>\n\n\n\n

6. Education Levels<\/h2>\n\n\n\n

Many higher-paying jobs require an\neducation beyond a high school diploma. Completing a bachelor\u2019s degree can\nincrease your overall income. The median annual earnings<\/a> for those with a bachelor\u2019s degree in 2017 was $60,996. With increased\nincome, these buyers can afford the higher prices and make better offers. <\/p>\n\n\n\n

Key Demographics Entering the Market<\/h2>\n\n\n\n

2020 created a seller\u2019s market where housing demand was high, and supply was low. This has led to a competitive atmosphere. These demographics continue to drive homeownership in 2021. <\/p>\n","protected":false},"excerpt":{"rendered":"

The past year has been \u2014 excuse us \u2014 unprecedented for many Americans. With the pandemic still influencing Americans\u2019 ability to work, move and navigate life, it\u2019s no surprise that it is also shaping homeownership trends in 2021. However, other factors, including changing family dynamics and generational shifts, are also making a mark on home … Continue reading Which Demographics Are Driving Homeownership in 2021?<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[419,835,285],"tags":[3873,700,59],"yst_prominent_words":[3859,5272,5286,904,5288,1139,5279,5280,546,5218,5030,1790,1459,1068,5273,5281,5289,5284,5282,5285],"_links":{"self":[{"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/posts\/5222"}],"collection":[{"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/comments?post=5222"}],"version-history":[{"count":1,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/posts\/5222\/revisions"}],"predecessor-version":[{"id":5224,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/posts\/5222\/revisions\/5224"}],"wp:attachment":[{"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/media?parent=5222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/categories?post=5222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/tags?post=5222"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/yst_prominent_words?post=5222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}