Homebuyer Trends in 2020 (Including Who’s Buying New Construction!)

Keeping up with homebuyer trends, including demographics and evolving homebuyer wants, is key to knowing how to sell and market new construction builds. That’s why we love the National Association of Realtors’ Home Buyers and Sellers Generational Trends Report. It’s an annual report that’s chock-full of data on who’s buying homes and why — and today we’re going to pull some of those fascinating stats, particularly as they pertain to new builders.  

We’ll start with general numbers, before zeroing in on new homes, but be aware that what we’re sharing is only a fraction of what’s contained in the 143-page report, and we recommend you look it over in full. The report is based on a 2019 survey of 5,870 homebuyers.  

Homebuyers by the numbers 

It’s probably not a surprise that millennial homebuyers continue to be a force. They represent the largest generational group of buyers at 38 percent, with boomers following at 33 percent and Gen X coming in third at 23 percent.  

And it’s older millennials (30- to 39-year-olds) who are the biggest force, making up 25 percent of overall buyers. This age group also comes in second for the highest household median income at $102,800. The group with the highest income? That would be Gen Xers between 40- to 54-years-old with a median income of $110,900.  

Here are some general trends to note: 

• Married couples continue to be more likely to purchase a home (representing 61 percent of all buyers).  
• Among single people, women (at 17 percent) were more likely to purchase a home than men (at nine percent). Unmarried couples didn’t have a high showing either at nine percent.  
• First-time buyers represented 33 percent of all homebuyers, which is unchanged from 2019. Fifty-two percent of those buyers were older millennials, while 88 percent were younger millennials (22- to 29-year-olds). 
• Buyers with children under 18 make up 35 percent of all buyers and 61 percent of older millennials.  
• Eighty-three percent of buyers purchased a detached single-family home. 
• Half of all buyers purchased in the suburbs, while small towns came in second at 22 percent of all buyers.   
• The median home price for all buyers was $257,000, but that number increases to $282,000 for older millennials and $278,000 for Gen Xers.  
• The median home size for all buyers was 1,850 square-feet. That rises to 1,900 square-feet for older millennials and 2,000 square-feet for Gen Xers.  

Finally, for all age groups under 65, the top reason for buying a home was a desire to have space of their own. For people 63+, that changed to a desire to be closer to friends and family (i.e. the “baby chaser” trend).