Strong housing demand is expected to continue through the next few years as the largest age group in the country enters the median entry-level buyer age of 33. According to John Burns Real Estate Consulting, the largest age group in the U.S. is 27 to 31 year olds. Appealing to these buyers through marketing and home design can result in high sales for builders. The Burns Housing Survey from the Front Lines found that builders focusing on entry-level buyers are reporting the strongest sales and many builders note entry-level buyers are spending much more than they used to.
“Younger buyers (<35) are stronger than in the past, and many times are the ones spending in the upper end in our neighborhoods.” As entry-level buyers are a bit older than they have been in the past, they are more likely to be in a better financial situation.
While some younger buyers may be in the market for higher-priced homes, there is certainly a segment of this cohort that is looking for affordability, which is becoming more of a challenge in today’s rising-price / low-inventory housing market.
Demographics: Part of the Tradeoff for Affordability May Be Home Size at the Entry Level.
The CDC reported this week that births declined in 2020 to the lowest level since 1979. With fewer babies being born, perhaps the home of the future has fewer bedrooms.