Oh WOW! Baby Boomers Dominate as the Largest Share of Homebuyers
The National Association of Realtors (NAR) just released their 2023 Home Buyers and Sellers Generational Trends Report showing that baby boomers surpass millennials as the largest generation of homebuyers!
Boomers comprised 39% of all homebuyers in 2022, up from 29% in 2021. Younger baby boomers (ages 58 to 67) made up 23% of buyers, while older boomers (68 to 76) made up 16%.
This ends the streak of millennials being the largest group of buyers in the market. 24 to 42 years old held the top spot since 2014, but affordability issues, among other factors, pulled the millennial market share down from 43% in 2021 to 28% in 2022.
However, baby boomers were able to take advantage of built-up equity and boosted home values during the peak market years of 2020.
Jessica Lautz, NAR’s deputy chief economist and vice president of research, commented that “the majority of [boomers] 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.”
Boomers also remained the largest generation of home sellers, rising from a 42% share in 2021 to 52% in 2022.
The drop in millennial buyers is tied to the overall decline of first-time homebuyers. Only 26% of all homebuyers in 2022 were first-timers, down from 34% in 2021.
Gen Xers (ages 43 to 57) comprised 24% of all homebuyers in 2022, slightly decreasing from 26% the previous year, despite having the highest median household income of any generation.
Generation Z (ages 18 to 23) comprised 4% of buyers, up from 2% the year prior. They also have the lowest median household income and purchasing properties at less than 1,500 square feet on average.