Usually when you think of first time home buyers, a picture of a young couple getting ready to start a family might be what comes to mind. They are switching from renting to owning because they are settling down or starting a life together, and they need to make sensible investments. You also might imagine them moving from the city to the suburbs.
However, with the record-breaking low prices of Chicago real estate, more and more first time home buyers are young, single and, surprisingly, female. Many young single people in the city of Chicago are making the switch from renting to owning, because it makes financial sense for them to do so in this market.Chicago Real Estate Buyers’ Demographics
Of all home purchases in Chicago:- 38% were made by singles
- 26% were made by single females
- 21% were made by single women
- 10% were made by single men
- Married couples: 41%
- Single women: 31%
- Single men: 16%
- Unmarried couples: 9%
- Other: 2%
On average, women spent about the same as men on their first home, despite a large income gap. While earning $57,000 as opposed to the $90,000 earned on average by men, both groups spent around $141,000 on their first home. According to the Chicago Tribune, “Women also got less bang for their buck; 72 percent of single women bought homes with 1,500 square feet or less, compared with 50 percent of men.” It might be because women chose a home based more on being able to see themselves living there, while men hunted for the best deal and had less specifications about the property.
There is also speculation that the growing number of young, single buyers in the city of Chicago is due to the fact that they can buy in the neighborhoods where they want to live– and where they might already be renting. Whereas it used to be affordable to rent in Lincoln Park, Lakeview and the Gold Coast, but probably not realistic for a young Chicagoan to own there, now young buyers are no longer priced out of these areas. Foreclosures and slashed prices have opened up these neighborhoods to young buyers.
via Chicago Tribune
If you are a young buyer in Chicago, now is your time to move. A great investment in a good neighborhood might be available to you now and could sell for a great price a few years down the road. If you are selling a home in Chicago now, don’t overlook the young buyer demographic– a young, single buyer might be able to afford and close on your home quickly if you strike the right deal with them.
