Who is the American home buyer? Probably not what you’re expecting

A home buyer evolution

The times, they are a-changing – at least when it comes to who’s buying homes. According to new data, the face of the American home buyer is evolving, trending “increasingly female, graying and childless.”

Women on the rise

According to analysis from Veritas Urbis Economics, as well as data from the U.S. Census Bureau, American home buyers aren’t who they used to be.

Ralph McLaughlin, chief economist at Veritas Urbis, summed it up.

“Home sales are on the rise, but the trend in buying isn’t among who you might think,” he said. “It is increasingly female, graying and childless, not male, young and with a family.”

More than 46 Percent of all home buyers last year were women, and almost 20 percent were single women, buying on their own. That’s up from 9.1 percent just three decades ago.

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According to McLaughlin, higher levels of education is part of what’s allowing more female buyers to enter the market. The number of women with a bachelor’s degree or higher hit 25.1 percent last year, up from just 11 percent in 1981.

Women are also working more, McLaughlin said.

“The share of adult women at work increased to a near-record high of 42.5 percent in 2017 from a near-low of 35.3 percent in 1981,” McLaughlin wrote. “What’s more, the increase in female-headed householders – both alone and with partners – far exceeds their changing demographic composition.”

Home buyer who?

Older home buyers are on the rise, too. Buyers 55 and older made up 27.8 percent of all home sales last year, nearly doubling from 1981. Buyers under the age of 35 fell to an all-time low in 2017, hitting 33.7 percent.

The analysis also showed that having children is less of an impetus for home buying than it once was. Just 40.7 percent of buyers last year had children, while 21.2 percent were single. In 1981? More than half of all buyers had kids and just 15 percent were unmarried.

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According to McLaughlin, these stark demographic shifts mean big news for sellers and builders.

“Graying homebuyers may be more attuned to the accessibility of a property, both inside and out, while single, childless homebuyers may demand fewer rooms but more communal spaces (think open lounges and kitchens rather than bedrooms),” McLaughlin said.

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