Sandwiched between the Millennial and Baby Boomer generations, Generation X bridges the gap between the analogue past and the digital present. They’ve weathered the housing crisis and can now take advantage of their unique position to make the most of real estate market trends.
From crisis to confidence
Generation X babies were born between 1965 and 1980. This puts them in their 30s and 40s at the time of the 2009 housing crash, with many being new homeowners at the time. As the housing crisis loomed, this generation made up over 1 in 10 of all foreclosures.
Yet as the real estate market has rebounded since then, so has Generation X. Many of those who were able to hold onto their properties and ride out the market fluctuations have managed to bounce back in high style. Generation X are innovators, making up 55% of start-up founders, and are known for their ability to adapt well to cultural changes. Research shows that 63.5% of Americans of this generation were homeowners in 2016, with the number growing each year on a global level.
A craving for stability
While the Baby Boomer generation was often interested in climbing the housing ladder by purchasing bigger and better properties, Generation X has been more cautious with their home buying. Perhaps due to the volatility of the market, they tend to purchase property with a long-term outlook. Statistically, they are drawn to new builds and buy with an eye to stay awhile.
In the USA, Generation X has the highest buying power with an average income of $106,600 per year. This tops both Millennial and Baby Boomer incomes, putting Generation X in the sweet spot for investing in larger, long-term properties. For their own family homes, they gravitate towards large, detached houses with backyards in the suburbs. Eco-friendly features are also important to this environmentally conscious generation. Rebounding from past instability, this demographic is ready for an upgrade.
Preparing for future investments
In addition to entering the property market for the purpose of becoming a homeowner, Generation X is now keen to invest. They are currently in their peak earning years which open up a broader field for investments. We’ve noted that real estate market trends show an increasing number of Millennials buying homes.
However, Millennials are still known as 'Generation Rent' for a reason, with a relatively high percentage renting properties in urban areas. This opens up a strong investment opportunity for Generation X, who can now open up new income streams from renters. Commercial real estate also creates an investment avenue to explore, with the chance for landlords to find tenants interested in staying longer. These commercial investments provide coveted long-term potential for buyers inching closer to retirement age.
Current trends show a strong market for all generations. Millennials are buying their first homes, thereby increasing demand and strengthening the real estate market for sellers. This makes it a great time for Generation X to buy and sell, with the housing crisis in the rear view mirror and unrivalled buying power.