Sometimes it takes a 30-year industry veteran to have the clearest vision into the next 30 years of the industry.

It’s no surprise to Sherry Chris, president and CEO of Better Homes and Gardens Real Estate LLC, that home buying trends, consumer characteristics and needs, along with marketing and communication strategies surrounding the real estate market have evolved with exponential speed in the last few years. Chris has been an innovator within the real estate industry throughout her three-decade career and is keenly aware of how today’s current and potential homebuyers are exceedingly different from past generations. Given that the 103 million people who comprise the echo boomers—adults 18-35 years old—came of age during one of the most dramatic housing-market downturns in U.S. history, one would expect that this new wave of potential homebuyers would have a different view of homeownership compared to baby boomers and, consequently, be trepidatious about taking the proverbial plunge. But new, groundbreaking data from Better Homes and Gardens Real Estate suggests that today’s and tomorrow’s homebuyers see the value and benefits of homeownership, and are approaching the process in a thoughtful, business-savvy way, thanks to easily accessible information and valuable lessons learned from housing industry events and trends of the past several years.

According to recently released national survey findings from Better Homes and Gardens Real Estate, 75 percent of echo boomers surveyed believe owning a home is a fundamental indicator of success. Those same respondents also believe they are more informed about homeownership than previous generations of buyers. More than three-quarters (77 percent) of the next generation of American homeowners surveyed believe they have become increasingly knowledgeable about homeownership due to increased media coverage on real estate topics in the wake of the housing crisis.

“We built our brand knowing that today’s consumer is the most informed we’ve ever seen,” says Chris. “That simple fact shapes everything we do at Better Homes and Gardens Real Estate. These survey results reinforce that the future is here and the empowered consumer is the new normal for our industry. Our brand offers tools and training to equip our brokers and agents with the ability to provide a more sophisticated level of service. We hope the learnings from our survey will help the industry at large understand the steps we all need to take to help this new generation of homebuyers find success.”

A More Knowledgeable Consumer

At the age of 24, Drew Wagner chose Better Homes and Gardens Real Estate The Beach Company to assist him in buying a home in Mount Pleasant, S.C.

“Seeing how the economic crisis affected my friends and relatives made me approach homeownership in a very deliberate, measured way. I did my research and worked hard to understand all the implications—both positive and negative—to ensure that I would have the resources and insight to support my decision,” he says.

Miguel Berger, broker and owner of Better Homes and Gardens Real Estate Tech Valley, has experienced firsthand the influx of a more knowledgeable consumer in upstate New York.

“Young homebuyers are very active in our real estate market right now,” explains Berger. “They know the proper questions to ask and have been researching the entire process, including agent selection, for three to four months before they even approach us.”

Contrary to how echo boomers are typically represented in the media, this next generation does not assume that homeownership will simply fall into their laps. The majority of survey respondents (71 percent) said that homeownership is not something they deserve; rather it is something they must earn. This has led young adults to carefully consider all of the implications of owning a home, including whether they are ready for the responsibility. Sixty-nine percent believe potential homeowners are ready for homeownership when they can afford to buy while also maintaining their lifestyle. For 61 percent of respondents, the “readiness indicator” is when they’ve landed a secure job. These statistics support Chris’s platform of the informed consumer, and help to debunk myths about the echo boomers as entitled consumers who want the quick win.

“It was important for me to feel ready,” adds Wagner. “I truly believe that buying a house is the ‘American Dream’ on many levels, including personally and financially, however, I needed to be sure I was capable of meeting the commitment and all that came with it—head on. Owning a home goes beyond the transaction—I had to be sure I was ready to maintain it, make it my own, and still enjoy the lifestyle I was used to. Once I felt ready, I looked forward to the process.”

After spending more than a year researching the local real estate market and home values in his area, Javan Cheetsos, 31, worked with Better Homes and Gardens Real Estate Ventura Barnett Properties to buy his first home where he planned to raise his family in Santa Clara, Calif.

“I found the Santa Clara market to be much more competitive than I thought it would be,” says Cheetsos. “Other buyers seemed to be looking for similar types of homes in the same community, making it very important to work with an agent who understood how to make the right offers. This was one of the most important milestones of my life, and I know the research I put into the process helped create the best outcome.”

Not only are these young homebuyers conducting extensive research about the residential real estate market, they are also looking to save money, some in surprising ways. Those surveyed expressed a willingness to make significant sacrifices in order to save for a home. These include limiting vacations (45 percent), taking a second job (40 percent) and even moving back home with Mom and Dad (23 percent).

Andy Asbury, broker and owner of Better Homes and Gardens Real Estate Area Leaders, based in Minneapolis, Minn., has been seeing similar trends in his market. “We have seen a trend of first-time homebuyers living with their parents beforehand to build up the necessary down payment. Many of our younger clients have also told us they chose to move back home because they had been paying top dollar for a rental apartment and were tired of spending a significant amount of money on a property that they recognized had no upside potential for them.”

Recognizing that buying a home is one of the biggest investments of their lives, these younger homebuyers aren’t limiting their research to available properties and house specs. Of those surveyed, interest rates (58 percent), home prices in a desired neighborhood (59 percent), and the ability to secure a loan (51 percent) are the top areas of research conducted before buying.

“Prior to purchasing our home, my wife and I were very mindful of what we could afford and what our actual mortgage payment was going to be,” said Daniel Sheahan, 32, a first-time homeowner who bought a new four-story home with a rooftop terrace through Better Homes and Gardens Real Estate Gary Greene in Houston, Texas. “We went into this process with a knowledge and understanding of the housing market and, more importantly, all of the surrounding financial requirements.”

“We are seeing that next-generation homebuyers have been cautiously watching the market and deciding that now is a good time to enter,” explains Chris. “In my experience, this generation prides itself on being thoroughly educated when making big decisions. They also have greater access to informational resources than their parents would have had available.”

David Cooper, president and CEO of Better Homes and Gardens Real Estate Kansas City Homes, noted that younger homebuyers are more acutely aware of their budgets than previous generations, and agents need to ensure they are working within their budget. This could mean strengthening negotiating skills or even sharpening the creative eye on fixer-upper properties to help buyers envision how they could transform a house to meet their budget and lifestyle needs. This translates into the delivery of a service level that is higher than ever before. Agents who meet this challenge will see the benefits.

“There is no question that the next generation of homebuyers in the Kansas City market is becoming more conscious about the financial responsibility of owning a home,” Cooper says. “They are more willing to sacrifice other expenditures, such as eating out or buying new clothing, to help save for this important life goal. We work with young homebuyers every day, and we are accustomed to helping younger and first-time homebuyers find the right house that fits their budget and lifestyle.”

And lifestyles are more diverse than ever.

“There is a new landscape of consumers coming on the market,” Chris says. “Our agents understand that no two consumers have the exact same needs, so they must be fluid and increasingly knowledgeable to adapt accordingly. Consumers know what they want; it’s the agent’s job to satisfy their needs in a personal and efficient way.”

“In the next 30 years, the methods and tools that homebuyers use to learn about the housing market will continue to evolve, and we’ll always strive to be one step ahead of the trends to meet the needs of our agents and consumers,” says Chris. “Right now, social media is one of the most direct channels for consumers to access relevant information about home prices, communities and the financial implications of owning a home. Real estate professionals not only need to be using these platforms to communicate with homebuyers, but need to understand how to use these channels effectively, efficiently and confidently.”

For more information, please visit www.BHGRealEstate.com