Wednesday, August 23, 2006

Newer generations are buying more homes

According to a new survey by Coldwell Banker, younger generations are buying more houses than their parents.

Sixty-six percent of survey respondents in the Silent Generation (aged 61 and up) have owned between two and five homes, according to the survey. Already, 66 percent of baby boomers (aged 42 to 60), have owned a similar two to five homes.

Younger generations surveyed are mimicking these home-buying habits. About half (48 percent) of generation X'ers (aged 32-41), and more than one third (36 percent) of echo boomers (aged 31 and younger), have owned between two and five homes. Fifty-eight (58) percent of respondents have owned more homes than their parents did when their parents were at a comparable age.

I'm not at all surprised by this. Newer generations are increasingly more mobile, and are more apt to move more often - either to a new home within the same market or to a new market altogether. Job relocations happen with greater frequency, and the percent of singles who own homes has also risen dramatically.

All of these things are clearly leading to the higher home ownership frequency referenced above, and that increased lifetime transaction activity should also be a significant factor in mitigating significant downward fluctuations in the housing market. Sure, we'll still see peaks and valleys over the years, but I don't believe we'll see them to the same degrees that have occurred over the past 30-50 years.