A new survey from the National Association of Realtors (NAR), shows some rather interesting statistics, and opportunities for the manufactured housing industry.

According to Furniture Today, the 132-question survey, as a part of the 2017 Home Buyer and Seller Generational Trends study, showed that “Generation X” households are buying more homes, a growing number of Millennial and younger Baby Boomer households have children living at home, and more Millennials are buying outside of the city.

The study showed that an improving economy, multiple years of strong job growth and a notable increase in home values fueled a greater share of purchases from Generation X households over the past year.

“Lost in this discussion are the numerous Generation X households who bought their first home, started a family and entered the middle part of their careers only to be rattled by job losses, falling home values and overall economic uncertainty during and after the Great Recession,” said Lawrence Yun, NAR chief economist.

“This year’s survey reveals that debt and little or no equity in their home slowed many Gen X households from buying sooner.”

Yun also said that recent Gen X buyers delayed buying longer than Millennials due to debt, and were also the most likely generation to have previously sold a distressed property, and want to sell earlier but couldn’t because their home was underwater.

“Gen X sellers’ median tenure in their previous home was 10 years, which puts many of them selling a property they bought right around the time home values were on the precipice of declining,” said Yun.

“Fortunately, the much stronger job market and 41 percent cumulative rise in home prices since 2011 have helped a growing number build enough equity to finally sell and trade up to a larger home. More Gen X sellers are expected this year and are definitely needed to ease the inventory shortages in much of the country.”

The survey also showed that the increase in purchases from Gen X buyers this year, 28 percent, was the highest since 2014 and up from 26 percent in 2016.

Millennials represented the largest group of recent buyers for the fourth consecutive year at 34 percent, but their overall share was down slightly from a year ago, which was 35 percent.

In what has been a growing trend, younger boomers reportedly considered adult children when buying, with increases in the cost of rent in many areas is prompting many middle-aged parents to buy a home with their young adult children in mind.

Younger boomers were also surveyed as the most likely to purchase a multi-generational home, with the top reason being that children over 18 years old either moved back home or never left.

“The job market is very healthy for young adults with a college education, but repaying student debt and dealing with ever-increasing rents on an entry-level salary are forcing many to either shack-up with several roommates or move back home,” said Yun.

“This growing trend of delayed household formation is one of the main contributors to the nation’s low homeownership rate.”

Also of note were responses from millennial buyers, as more have at least one child and also have a need for more space.

Breaking from prior trends, only 15 percent of millennial buyers bought in an urban area, which is down from 17 percent last year and 21 percent two years ago.

“Millennial buyers, at 85 percent, were the most likely generation to view their home purchase as a good financial investment,” said Yun.

“These strong feelings bode well for even greater demand in the future as more Millennials settle down and begin raising families. A significant boost in new and existing inventory will go a long way to ensuring the opportunity is there for more of them to reach the market.”

For more from the NAR, including MHProNews and MHLivingNews Publisher L.A. “Tony” Kovach’s report on the significant opportunities for manufactured housing, click here. ##

 

(Image credits are as shown above.)

 

Submitted by RC Williams to the Daily Business News for MHProNews.