Young professionals-creating their own demographic in the home buying market
By Lindsey Thompson
Back in the day, owning a home—along with having a good job, being married, having kids, etc.—meant you had achieved the so-called “American Dream.” But, often that dream of owning a home wasn’t realized until later in life, usually after the job, the marriage, and the kids.
Nowadays, young professionals are realizing their own version of the American Dream. Young people are considering homeownership long before the marriage, the kids, sometimes even the good job.
As the Generation X and Y-ers begin entering adulthood, they are doing so with huge numbers, buying power and influence. According to the 2006 American Community Survey, there are over $39 million people between the ages of 25 and 34 in the United States.
They are carrying their buying power and influence into the real estate market. Young people are buying and owning homes at much higher rates than in the past. The Census Bureau 2006 Annual Statistics showed that 48% of people ages 25 to 34 owned homes. According to the American Housing Survey of the U.S. Census Bureau, more than one-half of first time buyers were below 35.
The number of young homebuyers is increasing, as are those young homebuyers’ salaries. American Demographics found that the number of single 18 to 24 year olds making over $50,000 increased by 75% between 1994 and 1997. For 25 to 44 year olds, the number making over $50,000 increased by 59% in that same time period. The median age of entry-level buyers is 32 years and the household income was $57,200, according to the National Association of Realtors 2005 Profile of Home Buyers and Sellers.
With more money to spend, what are young professionals looking for when purchasing a home?
Young professionals are more likely to have high-pressure, active and fast-paced lifestyles and therefore need a home that will accommodate them. They want amenities, good locations and low-maintenance lifestyles.
Meghan Berigan, a young professional who recently purchased a Pulte townhome in Carmel said that not having to worry about yard maintenance was a huge draw.
“Working five days a week and going out of town during the week for work and gone here and there on weekends, it’s hard to keep up with the yard work,” she said. “I get the best of both worlds by living in a single-home type setting, which is in a great community, without having to maintain the exterior, which in turn allows me more time to enjoy my weekends and time with family with friends.”
With their increasing salaries, there are many young professionals who crave luxury in all parts of their lives, including their homes. They are looking for homes that will give them all the bells and whistles. “The young couples are saying that they want to ‘do this for them’ while they can, before the suburbs and minivans come into their lives,” said Jim Morgan, vice president of sales for Gunstra Builders.
Manchester Square, a Gunstra Builder’s Community in Zionsville, is one community that caters to the young professional.
The luxury townhomes available in Manchester Square have many of the bells and whistles the young professional is looking for, including hardwood and tile floors, granite and marble countertops, stainless steel appliances, and much more. “These distinctive, beautiful and spacious town homes are so much larger, and more nicely appointed than any other town homes around,” Morgan said. “Manchester Square is the most affordable upscale living in The Village.”
Located just outside the village of Zionsville, residents of Manchester Square are within walking distance of quaint shops and chic restaurants. They are also only a short drive to downtown Indianapolis, giving residents the best of both worlds. Morgan said that one of the current residents of Manchester Square said she finds herself walking everywhere now—to the store, the dry cleaners, to her spa, to dinner, where ever.
Diane Brooks, a realtor with F.C. Tucker, is marketing one of the Manchester Square townhomes. The townhome, 215 Wakefield Way, has wonderful views of the wooded area behind and over 2600 square feet. There are two bedrooms, three full baths and one half bath.
Many young people dream of having the ability to live in a solid-crafted townhome that is beautifully appointed, Brooks said.
“Placing that home in Zionsville where one can walk across the street for a latte or step on to the scenic rail trail makes that setting ideal,” Brooks said. “This community definitely appeals to young professionals, because they don’t have to sacrifice space and comfort for an affordable price.”
For more information on Manchester Square, contact Diane Brooks at (317) 844-4646.