With the popularity of new homes reaching all-time highs post-pandemic, it’s no surprise that new build home communities are experiencing a similar surge in demand. These vibrant neighborhoods are attracting a diverse range of generations, each with their unique reasons for making the move.
So, who exactly is calling these communities home? Read on to find out.
Why are People of Many Generations Moving to New Build Home Communities?
In many areas, the pickings for existing homes are increasingly slim. But new home communities are bursting with opportunities, offering an array of designs that can be built on available homesites as well as quick move-in homes that are ready now or will be in the near future. And it’s not just locals who are taking notice. Multigenerational families and foreign-born buyers are also joining the mix in increasing numbers, driving the growing popularity of new home communities and contributing to a rich tapestry of new home community buyers.
Baby Boomers (Born 1946-1964) are the largest generation in the U.S., and they’re increasingly swapping their family homes for something a bit cozier in new build home communities. The allure? A fresh start, complete with modern conveniences and a lively community of active adults. As they near retirement and the “empty nester” phase of life, a new chapter in homeownership often makes sense for Baby Boomers. So do smaller, more manageable yards, built-in accessibility features, and community amenities and activities like tennis, pickleball, fishing, book clubs, and more.
Gen Xers (Born 1965-1980) are also making their mark in new home communities. With plenty of earning power and families to provide for, Xers tend to seek out spacious houses nestled in top-notch school districts. They’re seeking room to grow, quality education for their kids, and a sense of community with other families. Of course, living near the endless opportunities provided by big-city living doesn’t hurt! Neither do amenities and activities for the whole family; think everything from hiking trails, pools, and sports courts to community gatherings, concerts and festivals.
A major force in the new home market, Millennials (Born 1981-1996) tend to think long-term when it comes to homebuying. They prioritize eco-friendly living, smart home technology, and high walkability or bikeability, all of which make new build home communities a perfect fit. Additionally, Millennials tend to value healthy, stress-free lifestyles within a self-contained environment, a cornerstone of new home communities. And finally, the fact that homes in these neighborhoods have a reputation for being excellent long-term investments continues to drive this generation to choose them over other options.
The newest players in the housing market, Gen Z (Born 1997-2012) are just beginning to dip their toes into home ownership. While they’re still early in their journey, they’re definitely showing interest in new home communities as well. They’re on the lookout for homes equipped with the latest tech, located in conveniently placed neighborhoods that foster a sense of community.
What Percentage of Each Generation Owns Homes?
As of now, 79% of Baby Boomers own homes, making them the generation with the highest homeownership rate. Following them are Gen Xers, with a homeownership rate of around 71%. Despite being the most active homebuyer generation, only around 52% of Millennials own homes, largely due to the adverse economic conditions during their prime homebuying years. Gen Z, being the youngest generation, has the lowest homeownership rate at 26%, but this number is expected to grow in the coming years.
Of course, these numbers are always changing as economic conditions, societal trends, and personal circumstances shift. But one thing remains constant: the dream of home ownership is alive and well across all generations.
Frequently Asked Questions:
What age group buys the most homes?
It’s a common misconception that older generations dominate the homebuying scene. In reality, Millennials – typically those in their mid twenties to early forties – are currently leading the pack in terms of home purchases. They’re stepping into their prime earning years and are eager to invest in a place of their own.
What generation owns the most property?
When it comes to property ownership, Baby Boomers take the crown. Having had more time to accumulate wealth and property, this generation, aged 59 to 77, holds the most significant portion of the nation’s residential real estate.
What demographic owns the most homes?
In terms of demographics, married couples tend to own the most homes. This is often due to combined incomes and the shared desire for stability and long-term investment.
What percentage of Gen Z are homeowners?
Gen Z, the youngest generation in the housing market, is just starting to make their mark in the homeownership ranks. As of now, they represent a small percentage of homeowners, with just 26% owning homes. However, this number is expected to rise as Gen Zers begin to establish careers.
Which generations are buying homes?
All generations are active in the housing market. Millennials are currently the most active, but Gen X and Baby Boomers are also purchasing homes, often looking for upgrades or downsizing options. And let’s not forget Gen Z, who are just beginning to explore homeownership as well.
Explore Hillwood Communities: Perfect For Every Generation
No matter your generation, Hillwood Communities can make your homeownership dream a reality. We’re dedicated to building quality new home communities, in top school districts, that offer all the opportunities of metropolitan living with none of the stress. Our award-winning lifestyle communities are more than just neighborhoods of timelessly-designed homes with exceptional amenities. Informed by our company’s five guiding principles, each Hillwood Community is designed from the start to create a culture of belonging where homeowners can connect and share a sense of community. It is in these places where neighbors become lifelong friends, and shared experiences become treasured memories.
If you’re interested in a new home community built for many generations, explore Hillwood Communities today.