Jumping from 29% in 2021 to 39% last year, baby boomers now make up the largest generation of home buyers compared with millennials who have been the top group of buyers since 2014.
According to the latest National Association of Realtors (NAR) Home Buyers and Sellers Generational Trends report, younger millennials (24 to 32 years old) and older millennials (33 to 42 years old) saw their combined share fall from 43% in 2021 to 28% last year.
“Baby boomers have the upper hand in the home buying market,” says Dr. Jessica Lautz, NAR 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.”
The study found that Generation Z (ages 18 to 23) now makes up 4% of home buyers, a slight increase from 2% in 2021, and nearly one in three Gen Z buyers moved directly from a family member’s home into homeownership. “As the youngest generation of home buyers and sellers, it’s encouraging to see Gen Z entering the market,” Lautz says. “Their desire for homeownership is strong, and many are relying on family support systems to help make their first real estate purchase.”
Making up 24% of total buyers, Gen X had the highest median household income of any generation ($114,300), followed by older millennials ($102,900).
A decrease from 34%, 26% of all buyers were first-time purchasers, the lowest since NAR began tracking the data. Seventy percent of younger millennials and 46% of older millennials were first-time buyers, followed by 21% of Gen X and 9% of younger boomers.
All generations are moving farther distances when relocating. On average, buyers moved a median of 50 miles, up significantly from 15 miles the previous year. Younger boomers moved the farthest at 90 miles, followed by older boomers at 60 miles and the silent generation at 50 miles. Younger and older millennials typically moved 15 miles away.
Up from 12 years in 2021, buyers overall expect to live in their homes for 15 years. Gen Z expected to remain in their newly purchased home for 19 years, while boomers expect 20 years and younger millennials, 10 years.
In addition to home buying, baby boomers are leading the way as the largest home seller generation, jumping from 42% in 2021 to 52% in 2022. On average, younger millennials stayed in their homes for four years, while older boomers sold their homes after 16 years. All generations typically remained in their homes for 10 years before selling, with wanting to be closer to friends and family being the most common reason to sell.
NAR found that 88% of all buyers say they view a home purchase as a good investment. Younger millennials at 74% and older millennials at 77% view a home as a better than or about as good financial investment as stocks.
