NAR Report Shows Millennials Surpassing Baby Boomers as Largest Homebuying Demographic
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The generation that has seen more financial crises and market fluctuations than any other is finally getting its day at the closing table. According to the National Association of Realtors’ 2024 Home Buyers and Sellers Generational Trends report, Millennials finally surpassed Baby Boomers as the largest group of home buyers.
Millennials now comprise 38 percent of the home-buying market — a huge uptick from 28 percent last year.
“The generational tug-of-war between Millennials and Baby Boomers continued this year, with Millennials rebounding to capture the largest share of home buyers,” said Dr. Jessica Lautz, NAR deputy chief economist and vice president of research. “This notable rise is attributed to both younger Millennials stepping into homeownership for the first time and older Millennials transitioning to larger homes that suit their evolving needs.”
Gen Z Becomes Homeowners, Baby Boomers Become Sellers
It’s not just younger (ages 25 to 33) and older (ages 34 to 43) Millennials making gains in the real estate realm, as Gen Z has entered the chat with 3 percent of the cohort becoming first-time buyers. Interestingly, about a third of buyers from this generation are single females.
“Gen Z buyers are entering the housing market, and their demographics are emerging distinctly from other age groups,” Lautz said. “More than half are single buyers, outpacing all age groups of single men and single women, and they are also most likely to identify as LGBTQ+.”
As far as sellers go, Baby Boomers are the largest generation of home sellers, making up 45 percent of the market. The time that buyers stayed in their homes has varied, too. According to the report, the median tenure of homeownership was 10 years before selling, but older Millennials put the for-sale sign out after six years — a stark change from Gen X (ages 44-58), Baby Boomers (ages 59 to 77), and the Silent Generation (ages 78-98), who kept to their nests for about 15 years.
Younger Millennials Make it to The Closing Table
Interestingly, first-time home buyers increased among many generations and made up 32 percent of buyers, an increase from 26 percent the year prior. Younger Millennials made up the lion’s share of first-time home buyers, with 70 to 75 percent making it to the closing table for the first time. But across generations, one thing was a common thread — homeownership is still very desirable, and likewise, so is hiring a licensed real estate agent.
“The universal value of owning a home transcends every generation, serving as a cornerstone for both personal prosperity and community development,” said NAR President Kevin Sears, broker-partner of Sears Real Estate in Springfield, Massachusetts. “In navigating the complexities of the market, buyers and sellers continue to rely on agents who are Realtors for their expertise and guidance, underscoring the invaluable service they provide in bringing dreams of homeownership to life.”
