The share of Baby Boomers has surpassed Millennials to once again makes up the largest generation of home buyers, according to the latest study from the National Association of Realtors.
The 2023 Home Buyers and Sellers Generational Trends report, which examines the similarities and differences of recent buyers and sellers across generations, found that the combined share of younger Boomer (58 to 67 years old) and older Boomer (68 to 76 years old) buyers rose to 39 percent in 2022, up from 29 percent the year prior. Younger Millennials (24 to 32 years old) and older Millennials (33 to 42 years old) have been the top group of buyers since 2014, but they saw their combined share fall from 43 percent in 2021 to 28 percent last year.
“Baby Boomers have the upper hand in the home-buying market,” said Jessica Lautz, NAR’s deputy chief economist and vice president of research. “The majority of them are repeat buyers who have housing equity to propel them into their dream home – be it a place to enjoy retirement or a home near friends and family. They are living healthier and longer and making housing trades later in life.”
Twenty-six percent of all buyers were first-time buyers, the lowest since NAR began tracking the data and a decrease from 34 percent last year. Seventy percent of younger Millennials and 46 percent of older Millennials were first-time buyers. Behind these groups, only 21 percent of Generation X (43 to 57 years old) and 9 percent of younger Boomers were first-time purchasers.
Generation Z – ages 18 to 23 – now makes up 4 percent of home buyers, up from 2 percent in 2021. Nearly one in three Gen Z buyers – 30% – moved directly from a family member’s home into home-ownership.
“As the youngest generation of home buyers and sellers, it’s encouraging to see Gen Z entering the market,” Lautz said. “Their desire for homeownership is strong, and many are relying on family support systems to help make their first real-estate purchase.”
Generation X made up 24 percent of total buyers. They had the highest median household income of any generation ($114,300).
