Who Is Most Likely To Buy A Brand New Home? People Age 55 And Older

Will your family be expanding soon? Consider hiring a contractor to help you make necessary changes to your house.

Who Is Most Likely To Buy A Brand New Home? People Age 55 And Older

25 January 2021
 Categories: Construction & Contractors, Blog


Millennials are the generation buying the highest percentage of homes each year, according to a 2020 report from the National Association of Realtors. However, when it comes to newly constructed homes, baby boomers are the generation making the most purchases. Several factors are likely to account for this.

Generations

Baby boomers in 2020 were in the age range of 55 to 73 years old. The NAR report says the silent generation, of age 74 to 94 in 2020, were the least likely to buy a home. When they do, though, they typically want something new. Millennials make 38 percent of home purchases but are less likely to buy a new one.

Finances

People in later middle age and senior citizens are the demographic groups who typically can afford a brand new home. The price is significantly higher for a new place than for an older, comparable home in a similar location. 

These individuals have been working full-time for decades and may have saved a substantial amount of money. They might have been planning for many years to eventually live in a house they had a hand in designing. Custom home builders bring their ideas into reality.

Features

Downsizing the residential square footage is not appealing to all people in this age group. Many select floor plans with three or four bedrooms. They want plenty of space for their adult kids and grandchildren to enjoy a fully pleasant time when staying overnight. Having at least two bathrooms is important. Some clients of home builders want two full baths and another half-bath.

Moving Away

The NAR report shows that people age 55 and up are most likely to move at least 20 miles away. Many want a beautiful retirement home for their senior years in a favorite location. If moving from the current hometown is in the plan, they like the idea of guests staying for short vacations or long weekends.

Getting Started

People in this age group may already have a contractor in mind, or they might need to do some research. Making a shortlist of builders in the area where the house will be constructed is the first step. Information is available online, and the property owners also could talk with homeowners in the community who had a new home built.

Interviewing a few contractors is advisable, both for getting more than one estimate and to be sure the relationship will be congenial. The construction process for a custom home requires many months, and the clients will want to feel comfortable with this professional relationship.

For more information about your home building options, contact a local custom home builder.