Is Generation X Killing Your Home Value?

Even with affordable home prices and extremely low interest rates in Tallahassee, your home value has not gone up much in the past 2 years.  The big question is: Why?  The big answer to your home value should really not be a big surprise: weak demand, especially amount younger potential home buyers.  Generation X, those buyers between 35 and 44 years old, have backed away from home buying more than any other age group since the 2008 recession.

Your Home Value

The Atlantic magazine just came out with a feature story revealing just how sharp the decrease is.  Generation X home ownership rates have dropped 9% since 1994.  Maybe it doesn’t sound like much, but that translates into hundreds of thousands of home buyers.  At a time in their lives where previous generations have increased their home purchasing, these buyers are not buying.  Employment seems to be a big reason.  Generation X is a small generation due to a decline in the 1970s birth rate.  Plus, many Gen X feel their employment situation is not stable enough, or the market may require them to move.

Tallahassee: How This Relates to Your Home Value

Back to your home value.  In the short term, there does not appear to be any change in the home ownership rate for Generation X in their prime income earning years.  With this many potential buyers out of the market, depressed housing demand will persist for the next few years.  With that flat demand, there will be only weak upward pressure on your home value.  Hopefully as the overall job picture improves, and wages start to grow again, we will see home value appreciation move toward a more normal 3-4% in Tallahassee.

Curious about your home value in Tallahassee?  Many neighborhoods are doing quite well despite overall flat demand.  Check out our “Quick Value” link to a speedy, but thorough estimate of your home value.  It’s quick, accurate and secure!

Fill out my online form.
HTML Forms powered by Wufoo.

Tags: , ,

Leave a Reply

You must be logged in to post a comment.