Peak home purchasing is most associated with which family life cycle segment?

• A. Bachelor
• B. Full Nest I
• C. Empty Nest I
• D. Newly Married

Answer: (B)

The main idea being tested is how family life-cycle stages shape major purchasing behavior, especially housing. Peak home buying occurs when a family has begun rearing children and needs more living space. This is the Full Nest I stage, where a couple has dependent children and looks for a larger home to accommodate the growing family, making a long-term housing commitment like a mortgage a priority. The stage combines a need for stability with the financial means to invest in a larger residence.

By contrast, a bachelor or newly married couple typically start in smaller accommodations and may not yet require extra space, while an empty-nest stage often involves downsizing as children leave home, reducing the likelihood of peak housing purchases.