The National Association of Home Builders (NAHB) is encouraging folks to buy new homes, stating that it’s “the right time” for buyers, especially younger buyers. June is National Homeownership Month, making it the perfect time to consider purchasing a new home.
“As the economy recovers and young people who had to live at home with their parents move forward with their lives and achieve their dreams of homeownership, home builders are delivering homes that cater to the floor plans, features, and affordability that this generation desires,” explained NAHB Chairman Rick Judson in the article.
Those born in 1977 or later are considered members of Generation Y. These homebuyers gave their opinions in the 2012 NAHB consumer preference survey and the results can help you make important building decisions. More than 80% of this demographic prefers an energy efficient home. As a builder, you can interpret this to mean Energy Star rated appliances, windows, and more can be appealing to members of Generation Y. Energy efficient homes save on utility costs over time in a home and can more easily regulate indoor temperatures.
Young buyers are also enticed by the lower maintenance costs that come with a newly constructed home. Older homes usually cost more to maintain and an according to an NAHB study, “homes built before 1960 have an average [annual] maintenance cost of $564, while a home built after 2008 averages $241.” Mortgage rates remain low, making now an affordable time for individuals to become homebuyers.
Generation Y homebuyers favor several floor plan inclusions, like game or media specialty rooms. Homes now often come ready with these features, even including state-of-the-art electronic wiring that helps accommodate the technology, televisions, gaming systems, sound systems, alarms, and more. Forbes outlined their list of Gen Y home requirements and, including game or media rooms, added to the table: huge, customized closets; home offices; urban homes with lots of amenities (think pool, gym, etc.); and, finally, hardwood floors.
In addition to the steadily improving housing market, a survey by Wakefield Research for Better Homes and Gardens sampled 1,001 Americans found that 69% of respondents felt that “the recent housing downturn has made them more knowledgeable about homeownership than their parents were at their age.” Online tools to help individuals figure out their credit scores and younger adults have been proactively reaching out to loan officers to know what they could be pre-approved for before even making the call to a realtor. This confidence is a positive sign for home builders and gives Generation Y’ers more of a reason to feel comfortable about investing in a new home.
“The time has never been better for young people to become home owners,” said Judson. “There are outstanding opportunities in the current market, with near record low interest rates, competitive prices and new homes being built that include open layouts, energy efficient components and other features that cater to young buyers.”