Home Buyers and Sellers – Generational Trends

• This year, the share of Gen Z buyers and sellers aged 18 to 25 made up just 3% of buyers and 2% of sellers.
• They are entering homeownership with the lowest household incomes, and they are unlikely to be married yet or to have children under the age of 18 in their home.
• Like younger millennials, they purchase older homes than other buyers.

Millennials

• Millennial buyers 26 to 34 years (younger millennials) and buyers 35 to 44 years (older millennials) make up 29% of recent home buyers; older millennials at 17%, and younger millennials at 12% of the share of home buyers.
• 71% of younger millennials and 36% of older millennials were first-time home buyers.
• 66% of older millennials were married couples, while younger millennials had the highest share of unmarried couples (13%) buying homes.
• Younger millennials are the most educated group, with 78% holding at least a bachelor’s degree or higher.
• 25% of younger millennials moved directly from a family member’s home before buying.
• Convenience to their job and commuting costs were both more important to buyers in this group.

Generation X

• Buyers 45 to 59 (Gen Xers) represented 24% of recent home buyers.
• This group had the highest-earning home buyers, with a median income of $130,000 in 2023.
• With this extra income, buyers 45 to 59 purchased the largest homes, along with younger millennials at a median of 2,000 square feet.
• 66% of their recent home buyers are married couples, providing them with dual incomes.
• Gen X buyers were the most likely to purchase a multi-generational home at 21% and were the most likely to purchase with the desire for a home in a better area.
• Buyers 45 to 59 years remain one of the most racially and ethnically diverse populations of home buyers, with 25% identifying as a race other than White/Caucasian.

Baby Boomers

• Buyers aged 60 to 69 represented 26% of recent buyers and buyers aged 70 to 78 represented of 16% of recent buyers.
• Baby boomers purchased for an array of reasons, primarily the desire to be closer to friends and family, due to retirement, and the desire for a smaller home.
• Younger boomers were the most likely to purchase in a small town, and older boomers were the most likely to purchase in a suburb/subdivision.
• Younger boomers expect to own their homes for the longest period of time at 20 years, and younger and older boomers purchased homes that were typically built in 1999.
• Buyers 60 and older typically moved the furthest distance at a median of 35 miles.

The Silent Generation

• Buyers aged 79 to 99 (the silent generation) represented one of the smallest shares of buyers at just 4%.
• As a large percentage of these buyers were likely to have retired from the workforce, they had the lowest median household income, homes, and purchased the second smallest homes at a median of 1,700 square feet.
• They typically purchase to be closer to friends and family.
• Buyers in this group were most likely to purchase in senior-related housing at 27%.
• They were more likely than younger generations to purchase new construction at 14%.
• They were more likely than others to choose a neighborhood based on convenience to health facilities.
• This age group also had the highest percentage of military veterans at 35%.
• Silent generation buyers were least likely to make compromises on their purchased homes and had a shorter search length at a median of eight weeks.

Financing Purchase of a Home

• 74% of home buyers financed their home purchase—a share that decreases as the buyer’s age increases.
• Younger buyers continue to depend on savings for their down payment, while older buyers use proceeds from the sale of their previous residence.
• 33% of younger millennials received down payment help in the form of a gift or a loan from a friend or relative.
• Older boomers were typically delayed the longest from saving towards their down payment due to debt at a median of 10 years.
• Buyers overall were delayed primarily by high rental costs, credit card debt, and student loans. In fact, 43% of younger millennials reported having student loan debt with a median loan balance of $30,000, compared to 29% of older millennials with a median of $35,000.
• While only 5% of older boomers had student loan debt, they had a median balance of $22,000. This may be due to not only their personal educational loans, but also accumulating debt from their children’s education loans.
• It was most common for buyers to cut spending on luxury/non-essential items and entertainment to save for their home purchases.

Selling a Home

• Baby boomers make up the largest share of sellers at 53%.
• Sellers 79 to 99 years were most likely to downsize in the size of their home.
• Baby boomers and the silent generation are selling to move closer to friends and family or because their homes are too large, while millennials are selling because their houses are too small or due to a job relocation.
• Older boomers typically owned their homes for 16 years before selling.