Who is buying homes today? There is a pretty good chance it’s not who you think.
A recent study by the National Association of Realtors took a closer look at which generations are buying the most homes. And after crunching the numbers, it came to a surprising conclusion.
Following is a look at four generations — Generation Z, Generation X, millennials and baby boomers — and a breakdown of which age group is buying the most homes today.
1. Baby boomers
Members of this generation comprise: 39% of homebuyers (split between 23% of younger boomers and 16% of older boomers)
This generation is defined as including: People born in 1946-1954 (older boomers) or 1955-1964 (younger boomers)
Surprise! The baby boom generation is back!
In 2022, boomers took back the crown from millennials as the generation purchasing the most homes.
In a summary of the NAR findings, Jessica Lautz, NAR deputy chief economist and vice president of research, says of baby boomers:
“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.”
2. Millennials
Members of this generation comprise: 28% of homebuyers (split between 12% of younger millennials and 16% of older millennials)
This generation is defined as including: People born in 1980-1989 (older millennials) or 1990-1998 (younger millennials)
Since 2014, millennials had been the generation buying the most homes year after year. But that changed dramatically last year, with their share dropping from 43% in 2021 to 28% in 2022.
3. Generation X
Members of this generation comprise: 24% of homebuyers
This generation is defined as including: People born in 1965-1979
Overshadowed by the much larger baby boom and millennial generations, Generation X keeps plugging along.
Even though they finish in third place on this list, they actually have the highest median household income of the four generations at $114,300.
4. Generation Z
Members of this generation comprise: 4% of homebuyers
This generation is defined as including: People born in 1999-2004
For the most part, members of Generation Z are just getting their start so it’s not a surprise that so few are buying homes.
Still, the NAR notes that the percentage of people in this generation buying homes doubled from 2% in 2021 to 4% in 2022. Generation Z buyers say owning a home close to family and friends is the No. 1 priority, according to the NAR.
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