Generation Xers Are Affluent, Diverse. What Is Holding Them Back?

Generation Xers have a lot going for them. They’re the most diverse and affluent homebuyer demographic, and they are purchasing the most expensive median home, according to NAR’s 2020 Home Buyer and Seller Generational Trends. But there’s still one major thing holding them back: debt. Even over a decade later, the generation is still dealing with fallout from the Great Recession as they try to pay off credit cards and other debt and have had to delay buying a home all together. When they are ready to buy, they are still the most likely generation to be denied a mortgage loan. 

From the 2020 Home Buyer and Seller Generational Trends report, Gen Xers, buyers (aged 40 to 54 years), remain the second-largest share of home buyers by generation at 23% of all homebuyers in 2019 and, being the most affluent and diverse generation, have dealt with many economic setbacks. This group also accounted for 22% of recent sellers. The median age for this group was 47 years old and they were born between 1965 and 1979. They tended to be families, as 64% were married couples, and 53% had one or more children under the age of 18 years living at home. The primary reasons that Gen Xers purchased homes were the desire to own a home of their own, the desire for a larger home, and job-related relocation.

Buyers 40 to 54 years were also the most racially and ethnically diverse group of home buyers, with 24% identifying as a race other than White/Caucasian. This group also had the highest percentage of home buyers that speak another language besides English. Thirteen percent of buyers 40 to 54 years were born outside of the United States.

Given their maturing age, Gen Xers continue to have the highest median household income at $110,900, while purchasing the second-most expensive homes at a median price of $278,000. They also purchased the largest homes at a median size of 2,000 square feet. They were most likely to purchase a detached single-family home in the suburbs, and 15% purchased a multi-generational home.

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