New-home construction is picking up in some markets. But what lures some buyers to new-home construction over a previously owned home?

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Older home buyers—between 54 to 72 years old—are the most likely to purchase a new home, according to the National Association of REALTORS®’ newly released 2019 Home Buyers and Sellers Generational Trends Report.

Many buyers—38 percent—who purchased new homes say they were looking to avoid renovations and problems with plumbing or electricity. For younger generations, that seems to be a particular perk with new-home construction. Seventy-four percent of buyers 28 years old or younger, and 51 percent of those between the ages of 29 to 38 who bought new, said they did so to avoid renovations. That is significantly less than older buyers—aged 64 to 72—who said their primary reason to buy new is because of the ability to choose and customize design features.

On the other hand, among buyers who purchased a previously owned home, one of the top influencers tended to be a better price. Studies show new homes tend to be about 26 percent more expensive than an existing home.

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A growing number of Americans believe now is a good time to purchase a home as the real estate market heads into what is traditionally its busiest season of the year. In the first quarter of 2019, 37 percent of consumers said they “strongly believe” that now is a good time to buy, up from 34 percent in the last quarter of 2018, according to the National Association of REALTORS®’ latest Housing Opportunities and Market Experience Survey.

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Why are Americans more upbeat? Lower mortgage rates and greater inventory may be driving more home shoppers this spring. “Inventory has been rising, so those buyers interested in making a purchase will not be limited in choices,” says NAR Chief Economist Lawrence Yun. “Additionally, more stable home price trends are leading to more foot traffic at various open house gatherings.”

Higher home prices don’t seem to be deterring potential buyers. Sixty-one percent of consumers say they think home prices in their communities have increased over the last 12 months, down from 63 percent in the fourth quarter of 2018. Forty-seven percent believe prices will rise in the next six months, while only 10 percent believe home prices will drop in that time period. Residents in the Northeast and South, renters, and those who earn between $50,000 and $100,000 are the most likely to believe home prices will rise in their communities, the survey shows.

The HOME survey also found that 53 percent of consumers believe the economy is improving. The optimism is greatest among those who earn $100,000 or more and those who live in rural areas. Among non-homeowners, however, some may still be skittish to enter the housing market due to financial concerns. Twenty-seven percent believe it would be “very difficult” to qualify for a mortgage given their current financial situation, and 28 percent said it would be “somewhat difficult” to qualify, according to the survey.

How to Help Consumers Get Off the Financial Sidelines

Mortgage affordability in the first quarter of this year has improved for would-be home buyers compared to recent previous quarters, Yun says. “The Federal Reserve’s decision to refrain from any foreseeable rate hike was beneficial to potential buyers,” Yun says. “That move directly contributed to mortgage rates declining in [Q1 2019], which provided a second-chance opportunity to those looking to buy who were priced out last quarter.”