First came the baby boomers, and then came Generation X followed by the millennials. You don't hear a lot of talk about Generation X as much as you do about the boomers and the millennials. While the baby boomers are thinking about their future retirements the millennials are busy preparing for their mid-age years. In the middle, Generation X, the people born in the 1960s and 70s, are purchasing real estate with a different mindset than the other generations.
According to a recent survey conducted by TD Bank, Gen X home buyers want freedom from their mortgages and don't want home loans to cramp their lifestyles. More than 2/3 of those surveyed said that they didn't want to allocate their entire budget to a mortgage payment. They want to be able to comfortably afford their homes and have money available for other extras.
In the survey, only one out of seven surveyed said that they went to the higher end of the spectrum in terms of what they could comfortably afford in a mortgage. A lot of their budget was going towards their mortgages and they were fine with that.
Amongst the Generation X people that were surveyed, 45% view their existing homes as a stepping stone towards another property in the future. Another 42% see their homes as the property they will occupy into retirement.
The price of the home is the primary consideration for people born during these years. Next on the list is the location of the property followed by the home's future potential appreciation. Interestingly, being close to public transit came lower on the list. For millennials, public transit access is one of the top priorities. As well, being close to schools was not a top priority for Generation X home buyers.