Young homeowners who scuffled through the economic strife of the Housing Crash appear now to be reaping the spoils of their resilience.
According to the Pew Research Center, Generation X (born 1965-1980) homeowners have seen their home equity nearly double since 2010..
In the same timeframe, Gen X household wealth has risen by 115 percent, surpassing 2007 levels. Baby Boomers (born 1950 to 1964) and the Silent Generation (born 1935 to 1949) have yet to recover their pre-crisis wealth levels.
Members of Generation X were hit disproportionately hard by the Housing Crisis. At the time, most were in their late 20s – a sort of first-time homebuyer “sweet spot.” Credit access was running like water. They were excited at their prospects and starting to build a little equity.
Just as things were looking up, several concurrent financial calamities resulted in the Crash and the succeeding collapse of the financial markets. Generation Xers lost an average of 43 percent of household wealth between 2007 and 2010, compared with 26 percent for Boomers and 14 percent for the Silent Generation.
Nonetheless, the tough experiences of Generation X are now rewarding them richly, turning them into attractive potential real estate clients.
Much of this can be chalked up to relative youth. Generation Xers are mostly in their 40s now, still in their peak income years and the historical height of spending power.
In 2018, many Generation-Xers have growing families. Some are even becoming empty-nesters. They not only want and need better homes, they can afford them. According to NAR, their “incomes are the highest among all generations of buyer types,” at an average of $104,700.
Firsthand experience with the consequences of over-reaching provided them with valuable perspective that serves them well – today – or in the event of another downturn.
Generation Xers today also aren’t likely to be first-time buyers, so chances are good they need to sell their current home, too – a possible two deals from one client.