Marketing Beyond Millennials - Part 2: What Buyers Want

When it comes to what buyers want in a home, the differences are less about what generation they belong to and more about their homeownership experience — again, first-time buyer versus repeat buyer. It’s not that millennials (aged 18-37) are young — it’s that they don’t know as much about buying and owning a home as the older generations tend to.

What they want from their home and neighborhood

Home preferences

Other than having a home within their initial price range, the top requirements across all generations are air conditioning and the home having their preferred number of bedrooms and baths.

For more than half of Gen Xers (aged 38-52, 51 percent), private outdoor space, such as a patio, deck or yard, is the next important requirement. The right number of bathrooms is fourth on the list for 58 percent of baby boomers (aged 53-72).

Perhaps not surprisingly, considering fixed incomes or stricter budgets, a whopping 81 percent of silent generation buyers (aged 73+) put finding a home within their price range as their top priority. They also place nearly identical values on air conditioning (64 percent), their preferred number of bathrooms (63 percent) and a floor plan that meets their needs (63 percent).

The takeaway: Market home preferences by generation. Gen Xers place high value on family-friendly features, like the desired number of bedrooms and private outdoor space. Baby boomers crave functionality: a floor plan that meets their needs, the right number of bedrooms and bathrooms, and air conditioning. Silent generation buyers prioritize value and comfort: finding a home within their price range, air conditioning, the right number of bathrooms and their preferred floor plan.

Where do the generations part ways on required home features? Millennials and Gen Xers are the most interested in generating rental income from their home purchase: 54 percent and 40 percent, respectively, require or desire that the property has good potential to increase in value, versus 24 percent of baby boomers and 19 percent of silent generation buyers.

Community preferences

What are home buyers looking for in their next community? And where are they coming from? Well, 47 percent of new construction home buyers are moving from a different city entirely. Significantly larger shares of baby boomers and silent generation buyers (24 percent and 20 percent, respectively) move to a different state (same country) than Gen Xers (9 percent) and millennials (8 percent) do. Again, age might factor in here, as older buyers could be looking for a retirement home that’s closer to family or in a warmer climate.

Baby boomers, silent generation buyers and Gen Xers are nearly identical in what they require from their neighborhoods. Their top three are safety, off-street parking or a garage, and being in their preferred neighborhood. For the next requirement, however, 36 percent of Gen Xers want to live in their preferred school district, and 31 percent each of baby boomers and the silent generation need proximity to shopping, services and leisure activities.

All three generations want to feel connected to the place they live. Of those who bought a new construction home, 80 percent of silent generation buyers, 71 percent of Gen Xers and 64 percent of baby boomers chose a home that was part of a larger community.

The takeaway: Amp up the safety and location of your community as a selling point for still-working households or for those seeking a post-job lifestyle. Gen Xers want their home in a family-friendly location in their desired school district and a safe neighborhood. Baby boomers prioritize safety, too, and being in their preferred neighborhood. Silent generation buyers require proximity to amenities.

Also, because nearly half of new construction buyers are coming from out of town, think about how and where your marketing can reach buyers outside your area. Unless they’re visiting the area before deciding to move there, these buyers aren’t driving around seeing your local ads and billboards on a regular basis.

What was the least influential neighborhood characteristic among the older generations? Perhaps due to their retirement or near-retirement age, 80 percent of silent generation buyers and 69 percent of baby boomers aren’t swayed by a home’s location in their preferred school district.

And 59 percent of Gen Xers say proximity to public transportation was not a priority.

Continue reading our three-part series, Marketing Beyond Millennials:

• Marketing Beyond Millennials - Part 1: The Buyer's Search
• Marketing Beyond Millennials - Part 3: Deciding on a Home