Generation X Makes a Comeback in the Real Estate Market

Generation X homeowners have made a comeback this past year in the real estate industry. During the housing crash, many Generation Xers suffered by owing more than their homes were worth. Today, they are bouncing back. Thanks to a strong economy and housing values back on the rise, this generation is starting to catch up with their Boomer and Millennial counterparts.

The National Association of REALTORS (NAR) released the Home Buyer and Generational Trends study for 2017 that showed Gen X homebuyers grew from 26% to 28% this year. However, they still lag l behind millennial and baby boomer homebuyers (34%) and (30%) respectively.

Most Gen Xers, who are today aged 37 to 51, are in their prime earning years and making more money than their counterparts, which has contributed to the number of new homebuyers. The average Gen Xers make $106,600 a year, which puts them above both the baby boomers and the millennials. These salaries, along with low mortgage interest rates, have allowed Gen Xers to buy four-bedroom houses with multiple bathrooms, and yards for the kids to play in.

Now that Gen Xers are able to take back the housing market, many are looking to bump up to provide larger spaces and better school districts for their children. It’s no surprise that this generation has the most children still living at home. With both a strong economy and job market Gen Xers have built up enough equity to sell their current homes, and upgrade to larger spaces that accommodate their families.

Generation X has had a rocky relationship with the real estate industry, but times are changing. In the past years, Gen Xers have taken a back seat to millennials who seem to be dominating the housing market with the biggest share of homebuyers.

Although millennials have bought the most houses of all the generations, they tend to buy the least expensive properties.

With many Gen Xers being able to trade in their older, cramped houses and upgrade to larger, more luxurious houses, it will be interesting to see where they settle down. Will they stay in the suburbs or move to a more urban setting to be closer to the office? The survey found that now more than ever millennials are moving out of the city and settling down in the suburbs. On the other hand, baby boomers are moving into the urban areas. Time will tell where Gen Xers will land but with more buying power than ever before, they have many options.