How Home Buying Has Changed In 2023
By Dustin Meyer
If you're in the market for a new home, it's helpful to know what other buyers are looking for. Here are some of the key findings from the latest National Association of Realtors (NAR) report on home buying trends...
If you're in the market for a new home, it's helpful to know what other buyers are looking for. Here are some of the key findings from the latest National Association of Realtors (NAR) report on home buying trends:
1. 41% of new home buyers were motivated by the desire to avoid renovations and fix problems with plumbing or electricity. On the other hand, 31% of buyers who purchased previously owned homes were looking for a better price. Younger boomers were more likely to buy new homes because they wanted to choose and customize the design features.
2. The most common type of home purchase was a detached single-family home, making up 79% of all homes purchased. This was the case for all generations, but the Silent Generation was more likely to purchase apartments or condos.
3. 7% of buyers over 60 years old purchased senior-related housing, with the number rising to 12% for the Silent Generation.
4. The median distance between the homes that recent buyers previously lived in and the homes they purchased was 50 miles, up from 15 miles the previous year. Older Baby Boomers typically moved the farthest, with a median distance of 90 miles, while Millennials moved the shortest distance at 15 miles.
The typical home recently purchased was 1,800 square feet, with three bedrooms and two bathrooms, built in 1986. Gen Xers tended to buy larger homes, with a median size of 1,970 square feet, while Gen Zers bought smaller homes, with a median size of 1,480 square feet. Older Baby Boomers tended to buy the newest homes, with the typical home built in 1996.
5. The most important environmental features for recent home buyers were heating and cooling costs (31%) and windows/doors/siding (28%). Younger Millennials were more concerned with commuting costs, with 35% finding it very important.
6. Overall, buyers expected to live in their homes for a median of 15 years, up from 12 years the previous year. Younger Millennials expected to live in their homes for a shorter period of time, with a median of 10 years, while Younger and Older Baby Boomers expected to live in their homes for 20 years.
In conclusion, recent home purchases showcase a diverse range of preferences and priorities among different generations of buyers. From avoiding renovations to customizing design features to considering environmental factors and commuting costs, buyers have unique motivations for purchasing a home. The most common type of home purchased continues to be the detached single-family home, with the typical home being 1,800 square feet and built in 1986. With an expected median length of 15 years, buyers are looking to make their homes a long-term investment. Understanding the characteristics of homes purchased can help potential buyers make informed decisions and find the perfect home that meets their needs and preferences.