Unsurprisingly, Baby Boomers have reclaimed the top spot for home purchases, surpassing Millennials for the first time since 2014, according to a new report from the National Association of Realtors (NAR).
Millennials, who had dominated home-buying from 2014 to 2022, accounted for 38% of home purchases in 2023, compared to 31% by Baby Boomers. However, the latest findings reveal that Boomers have surged to 42% of the market, while Millennials have dropped to 29%. Generation X followed with 24% of purchases, and Gen Z represented just 3%.
The shift can largely be attributed to the current housing market’s high mortgage rates and elevated home prices, which have priced many younger buyers out. At the same time, Baby Boomers, who often have significant equity in their homes, have the financial flexibility to purchase homes outright, a key advantage in today’s market.
The generational dynamics also reflect broader life trends. While older Millennials, many in their 40s, have locked in low mortgage rates and may not feel the need to move, younger Millennials have been increasingly sidelined due to financial barriers. Baby Boomers, in contrast, are often downsizing or seeking new properties as they experience life changes, such as retirement.
The NAR’s report highlights a growing divide in the housing market, where homeowners with equity are positioned to make moves, while potential first-time buyers struggle to enter. Additionally, with the median age of first-time home buyers rising to 38, a significant shift has occurred in the overall home-buying demographic.
The findings are based on a survey of 5,390 individuals who purchased homes between July 2023 and June 2024. The report paints a clear picture of a housing market increasingly defined by those with financial resources, further emphasizing the challenges facing younger generations attempting to navigate homeownership.
