Older Buyers Retake Crown of Largest Homebuyer Generation

Across the country, Baby Boomers are now the largest cohort of homebuyers according to new National Association of Realtors research. 

It’s a reflection of their wealth and assets in a market where access has been tightly constricted by price and interest rate jumps, the association’s economists say. 

The 2023 NAR Home Buyers and Sellers Generational Trends report found that 39 percent of homebuyers during the 2022 spring market were either younger or older Boomers, compared to 29 percent the year before. That crowded out younger and older Millennials, whose combined share of the market shrank from 43 percent in spring 2021 to 28 percent in spring 2022. Up to now, they’d been the biggest group of buyers since 2014. 

“Baby boomers have the upper hand in the homebuying market,” Dr. Jessica Lautz, NAR deputy chief economist and vice president of research, said in a statement. “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.” 

Only 1 in 4 buyers were purchasing their first home, NAR said, the lowest share since the association began tracking the data and down from 1 in 3 the year before. But most Millennials were first-time buyers, compared to 21 percent of Generation X buyers and 9 percent of younger Boomers. 

Generation Z made up only 4 percent of buyers, but 30 percent were moving directly from a family member’s home into home ownership. 

“As the youngest generation of home buyers and sellers, it’s encouraging to see Gen Z entering the market,” Lautz said. “Their desire for homeownership is strong, and many are relying on family support systems to help make their first real estate purchase.” 

Generation X made up 24 percent of total buyers. They had the highest median household income of any generation ($114,300), followed by older Millennials ($102,900). 

NAR’s report is based on a survey mailed out to thousands of buyers and sellers in July 2022.