Young With Money: Your Prime Prospects

Keep an eye on 18-to-35-year-olds with household incomes of $100,000 or more.
By: Camilla McLaughlin: REALTOR® Magazine Online
Keep an eye on the young-with-money set — 18-to-35-year-olds with household incomes of $100,000 or more. They’ll be good prospects, particularly for upscale homes, says Bob Jordan, president of International Demographics.

The demographic represents 26.6 percent (6.2 million) of the 23.2 million adults with household incomes over $100,000 in the 87 metros regularly surveyed by The Media Audit, part of International Demographics.

The number of young with money also eclipses the age 55 and over bracket. “There are more — by both percent and actual number — adults with six-figure incomes under the age of 35 than there are over the age of 54,” says Jordan.

An analysis of Federal Reserve data by the National Association of Home builders bears this out: Median income for 55-plus households is somewhat lower than it is for younger households.

Better Educated Women, Wealthier Men

Fifty-six percent of the women in the young-with-money group have one or more degrees, compared with 46 percent of the men. Although younger women tend to have more degrees, more younger men, 60.9 percent, have six-figure incomes compared with 39.1 percent of women. And men get to the $100,000 income level more quickly, with 19.4 percent of 18- to 20-year-old men at or above this income compared with 15.6 percent of women.

Still, education level is key to wealth for this group, and Jordan anticipates that young adults with money, particularly those with an education, will continue to be a growing part of the marketplace.

Homeownership Trends

Younger women aren’t only more likely to buy a house, but they’re also more likely to own a larger or more expensive home compared with men in the same demographic.

    • 46.5 percent of women age 18 to 35 have homes valued at $300,000 or more.
    • 42.2 percent of men have homes valued at $300,000 or more.
    • 80.7 percent of women in this group own their home, compared with 74.3 percent
      of men.

Other Young-With-Money Stats

    • 63.2 percent of the "young with money" are 25-34
    • 58.3 percent are Caucasian
    • 9.7 percent are African-American
    • 15.3 percent are Hispanic
    • 12.7 percent are Asian