The Changing Face of the Modern American Homebuyer

  • Categories:

    Industry Trends

  • Date:

    August 17, 2016

The Changing Face of the Modern American Homebuyer

Industry Trends

Millennials made a big splash this year when they became the United States’ largest living generation. According to the NAR, they also constituted the largest share of homebuyers in 2015 (35 percent, up from 31 percent just two years prior).

Now women ages 18-34 are closing in on their male counterparts in the mortgage arena, listed as the primary borrower on nearly one-third of all closed loans within the Millennial generation.

A few key stats reflect significant changes happening in this space:

  • Of closed loans where women were the primary borrower, more than 60 percent are single.
  • Of closed loans where men were the primary borrower, only 41 percent are single.
  • The average FICO score of females in the Millennial generation with closed loans is 723, just slightly lower than the average FICO score of their male counterparts (724).
  • The average age for Millennial women who purchased a home (29) is almost identical to the average age for Millennial men (29.2) who also closed on a loan.

Though this is a post about Millennials, it’s worth noting that in general, single women (15 percent of all homebuyers in 2015) now buy homes more often than single men (9 percent).

If you’re a marketing pro in the home or building sector, here are three tips to help you connect with the modern American homebuyer:

  1. Provide options designed for buyers who don’t fit the traditional core family structure (mom, dad and two kids). Houses with flexible, multipurpose spaces can interest a variety of buyer types and family structures.
  2. Be prepared to educate potential buyers on more technical features such as construction materials and home networking. If you are working with male and female co-buyers, be sure to address the female buyer equally in these discussions, as she may be the primary decision-maker.
  3. Reevaluate your media mix and targeting on a regular basis. Are you only talking to men? If so, you may be missing a sizable portion of your potential customers.

With so many Millennial women pursuing ambitious career goals and achieving financial independence, this trend is here to stay. The only question that remains is how high they’ll climb. 

Sources: Bankrate, HousingWire, National Association of REALTORS® (NAR)

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