Young Home Buyers: A Growing Market Segment

August 5, 2008

Young home buyers are growing as a viable home buying segment in today’s market. Individuals and couples still in their 20s are the focus of intense marketing effort by home sellers, Realtors and builders.

Why the new interest in this home buying market demographic segment? These young business and professional people are often well educated and are making good incomes, thus can qualify for a sizable mortgage loan. Also, in many cases they are first-time buyers and not burdened with another home they must sell before buying a new one. Selling a home to these buyers is often quick and relatively easy, due to the lack of problems often associated with older buyers. It’s a segment that’s particularly appealing to professional home sellers in today’s generally sluggish sales market.

However, these young buyers sometimes have their own baggage to deal with. They might have minimal credit history, and that’s a concern to mortgage lenders who scrutinize applications intensely in today’s market. Also, many first-time buyers in their 20s have sizable student loans and credit cards they are paying off.

Posted in Real Estate