"Millennials Lead Home Buying Surge, Gen Z Emerges

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Real Estate


The National Association of Realtors (NAR) reports that Millennials, now aged 25 to 43, have overtaken baby boomers as the country's largest demographic of home buyers. Millennials currently account for 38% of home purchases, significantly increasing from 28% the previous year. Conversely, baby boomers aged 59 to 77 have reduced their home-buying activity from 39% to 31%.

Dr. Jessica Lautz, NAR's Deputy Chief Economist and VP of Research, notes, "The generational dynamics between millennials and baby boomers persist, with millennials now leading the charge as the largest group of home buyers." This shift is attributed to younger millennials entering homeownership for the first time and older millennials seeking larger homes to accommodate their changing needs.

The NAR's report also highlights a rise in first-time homebuyers across various generations. 32% of all buyers are first-timers, up from 26% the previous year. Younger millennials lead this trend, with 75% being first-timers. Generation X (44-58) and older millennials contribute significantly to the first-time buyer segment.

Meanwhile, Generation Z (ages 18-24) is entering the housing market, displaying a diverse and independent profile. Though representing only 3% of buyers, 31% of Gen Z purchasers are single females, a proportion higher than any other generation. Dr. Lautz remarks, "Gen Z buyers exhibit distinct demographic characteristics, with a majority being single."

Despite evolving buyer trends, baby boomers remain dominant in home selling, representing 45% of all sellers in 2023. The tenure of homeownership before selling varies among generations. Older millennials typically sell after six years, contrasting with Gen X, baby boomers, and the Silent Generation (ages 78-98), who usually stay in their homes for 15 years.

Kevin Sears, NAR President and Broker/Partner of Sears Real Estate in Springfield, Massachusetts, emphasizes the enduring value of homeownership across generations. "Owning a home remains a cornerstone of personal prosperity and community development," he states. "Real estate agents, particularly Realtors, play a crucial role in guiding buyers and sellers through the complexities of the market, making homeownership dreams a reality."