Demographic shifts are a key driver of housing demand. But even more interesting than how different generations move is how their decisions influence one another. In today’s market, the migration of one demographic group can set off a chain reaction that reshapes an entire market.
This is especially true for millennials and baby boomers, the two generations that continue to dominate the housing narrative. Millennials remain the largest generation in the U.S., but their share of home purchases dropped to 29% in 2024, down from 38% the year prior, according to the National Association of Realtors. Boomers, by contrast, made up 42% of home purchases last year, often leveraging home equity and cash in today’s high-rate environment.
Yet millennials continue to shape housing demand, particularly in markets where it’s growing. As they move and seek out affordability, job opportunities, and space for growing families, many baby boomer parents are following close behind. Zonda surveys show that a quarter of boomers plan to retire near their children or grandchildren, creating a distinct pattern of intergenerational migration that is quietly reshaping many market-level housing dynamics.
This trend forms the foundation of Zonda’s proprietary Baby Chaser Index, our annual ranking of the markets where both millennials and boomers are relocating to and establishing roots. These are the markets where both ends of the demographic barbell are fueling demand, presenting unique opportunities and challenges for the housing industry.
While this year’s Baby Chaser Index methodology remained consistent with last year’s by looking at overlapping migration patterns of the two demographic cohorts, the latest results revealed a noticeable reshuffling among the top-ranked markets:
- Orlando dethroned Austin, despite the Sunshine State’s ongoing economic and housing headwinds. Long known for its retirement appeal, Orlando’s rise in rankings was driven by accelerated growth among millennials. The annual growth rate of millennials in the market nearly tripled year-over-year.
- Texas remained dominant. Almost half of this year’s Top 10 markets were in the Lone Star State. Austin, Dallas, and Houston all secured Top 5 positions, while San Antonio returned to the rankings at No. 10. McAllen was the only other Texan market to make the index, coming in at No. 40.
- Raleigh cracked the top three, fueled by a sharp uptick in its boomer migration rate, which nearly doubled year-over-year.
- Charleston slipped seven positions to No. 9 as millennial growth remained consistent, but boomer migration slowed.
Florida: Not Just for Retirees
Despite affordability and insurance challenges, demographic migration remains a bright spot for the Sunshine State, especially for Central and Northeast Florida. The state has long been known as a retiree haven, but it’s now seeing a growing wave of younger buyers, which is reshaping the state’s housing profile and indirectly fueling additional demand from baby boomers.
What is attracting these generations? A few things, according to Susan Heffron, vice president with Zonda Advisory and Florida expert, including the state’s “relative affordability for new construction.” She also pointed to changes in product offerings, with “an increase in townhomes (instead of attached villas) and family-oriented two-story homes that offer more square footage for growing families. Amenities are also shifting with numerous ‘lagoon’ communities planned. These communities are attracting both residents and spillover demand from nearby neighborhoods, where residents can purchase annual passes to access amenities.
This trend was especially clear in Orlando, which jumped from No. 3 to No. 1 on this year’s index.
While Orlando has long attracted retirees, its recent employment growth is drawing in younger career-minded households looking to put down roots.
“Orlando is one of the top employment markets over the past 12 months in the state, adding more than 29,000 jobs,” Heffron said. “These jobs are not just in leisure and hospitality (as one typically associates with the Orlando area) but include professional and business services, government, and education.”
She also noted that migration inland from Sarasota and Tampa, especially after the recent hurricane, has boosted growth on the western edge of the market.
Jacksonville, which fell three positions to No. 6, remained a more affordable alternative to Orlando. The market offers strong connectivity to Georgia, South Carolina, and other coastal destinations, along with lower congestion and growing development activity.
“Jacksonville is benefiting from development activity pushing out from Orlando and upward from Savannah,” Heffron said.
Texas: Still a Powerhouse
The Lone Star State once again cemented its dominance in the Baby Chaser Index, with four markets in the top 10, three of which landed in the Top 5. Texas markets continued to attract millennials with job growth, housing activity, and family-centric communities, while boomers often followed close behind.
“Opportunities, quality of life, relative affordability, numerous high-quality MPCs—these are major draws,” said Bryan Glasshagel, principal at Zonda Advisory and Texas expert. “These markets are also all large population centers and among the Top 10 most active homebuilding markets in the country. That combination probably makes it hard for them to fall out of the Top 10 on the Baby Chaser Index.”
Still, this year did mark the end of Austin’s multi-year reign at No. 1. While Austin’s millennial and boomer populations continued to grow, the pace of growth slowed slightly compared to peers. Ongoing overgrowth and affordability concerns, combined with tech sector volatility and economic uncertainty, have tempered some of Austin’s growth momentum. Even so, its lifestyle appeal and Texas Hill Country setting helped it maintain a firm hold at No. 2.
Houston, on the other hand, broke into the Top 5 for the first time this year, driven largely by its millennial population growing at more than double their historic rate. Houston is a favorable market for working-age individuals, offering a healthy combination of affordable housing and a diversified labor market.
Houston’s No.4 ranking led Dallas to drop one spot this year to No. 5. However, Dallas remained a strong index performer thanks to the market’s well-established infrastructure, healthy mix of master-planned communities, access to top-ranked school districts, and expanding suburban employment hubs, including Plano, Frisco, and Irving.
This year also marked San Antonio’s return to the Top 10 after being bumped out by Oklahoma City. Its No. 10 ranking was driven by renewed momentum across both age cohorts of interest, and the market continues to stand out for its relative affordability, historical charm, high livability, and steady job growth.
Carolinas: Beneficiaries of “Half-Back” Shoppers
Two inland North Carolina markets, Raleigh and Charlotte, remained in the Top 10 this year.
“While Raleigh and Charlotte are not the typical coastal destinations that retirees gravitate to, the quality of life, abundance of year round activities, and variety of quality housing options—at prices that are still more affordable than the markets they are moving from—make these compelling choices for retirees,” said Shaun McCutcheon, vice president at Zonda Advisory and Carolinas expert.
Perhaps even more important is how family-oriented these markets are, which resonates particularly with Baby Boomers.
“Our consumer research finds that the No. 1 reason why retirees decide to move is not for a better climate or community amenities—it’s to be closer to their children and grandchildren,” McCutcheon said.
Builders have responded accordingly to this specific demand driver, with more large-scale active adult communities planned to meet demand, particularly in Raleigh.
This, combined with Raleigh’s sustained employment gains in tech, education, and life sciences, has continued to support home purchases for adult children. These dynamics helped push Raleigh to No. 3 from No. 5 last year.
Charlotte, meanwhile, held steady at No. 8, supported by strong in-migration from the East Coast and its reputation as a Southeastern financial hub. Both Charlotte and Raleigh have also benefited from the half-back phenomenon, where individuals from the Northeast and Midwest who originally moved to Florida move “half back” to their original location, landing in the Carolinas.
Charleston, the only coastal Carolina market in the Top 10, slipped seven positions from No. 2 to No. 9. Charleston’s millennial growth picked up pace year over year, but growth among baby boomers slowed, which lowered the market’s composite score. Still, Charleston remains a top-tier destination thanks to its coastal charm and wide range of housing options—from more affordable inland developments to 1M+ coastal properties.
As McCutcheon noted, it also offers “world-class dining and shopping options that appeal to retirees with disposable income.”
The Path Forward
The intergenerational migration story is far from over. If anything, it’s becoming more layered, more localized, and increasingly essential to understanding the trajectory of U.S. housing, especially as Gen Z starts to shape the next wave of demand.
Sarah Bonnarens contributed to this article.
