18 Feb Young Buyers Vs. New Buyers
Metrostudy and Builder Online help define that the millennial, entry-level, and first-time buyers are not the same.
The 2015 new home market has been focused on entry-level buyers, but the problem is that many marketers view entry-level buyers, first-time buyers, and millennials as the same. While more millennials are expected to show up in the marketplace this year, there are important distinctions between these three groups of buyers and the roles they play in new homebuying this year.
First-time homebuyers have traditionally been in their late twenties or early thirties, but studies show that the 20-something new homebuyer is not staging a major comeback.
That is not the same thing as saying that the millennials will not come back. Right now, that group, also in their late twenties, is renting. However, as rents continue to move higher, an increasing number of them are buying homes.
Most important in 2015 is that “Entry-Level” and “First-Time” Homebuyers are no longer the same. Entry-level buyers in the new home market have often purchased one or more resale homes, built some equity, and then stepped up to a new home from there.
First time homebuyers aren’t always scraping by, either. There is also a first-time homebuyer group that is affluent, who used to rent in A+ locations and is now ready to buy.
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