The first generation to come of age in the green-grass suburbs, listening nonstop to the Beatles, and believing that “Make Love, Not War,” was a both a political as well as romantic statement, is now the largest group of home buyers in the country.
According to a new report issued by the National Association of Realtors, the Baby Boom Generation, that massive group of nearly 76 million people born between 1946 and 1964, now makes up the largest generation of U.S. homebuyers.
That group, reveals the NAR’s new report, Home Buyers and Sellers Generational Trends, currently represents 39% of the homebuying marketplace. Those belonging to the 72 million strong Millennial Generation, born between 1981 and 1996, represent the second largest homebuying segment at 28%.
While the numbers may seem logical on the surface, they represent a demographic flip flop that for the last 6 years or so have seen the Millennials as the largest homebuying segment, following by the Baby Boomers.
What’s changed in the last year is that an increasing number of Millennials, having purchased their first home within the last decade, are not necessarily currently in the market for a second home.
The restless Baby Boomers, meanwhile, appear to be increasingly interested in buying a new home now that they are entering their retirement years.
“Baby Boomers have the upper hand in the home buying market,” remarked Jessica Lautz, deputy chief economist with NAR, in a statement.
The majority of those Baby Boomer homebuyers, continued Lautz, “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 longer and making housing trades later in life.”
Members of Generation Z, those born between 1997 and 2012, are numbered at an equally large 68 million, but so far represent only 4% of the market. Given their ages and earnings potential, this is obviously a group with significant growth potential. And, in fact, their home buying presence doubled from 2% in 2021.
“Their desire for homeownership is strong,” noted Lautz of the just-emerging Generation Z, “and many are relying on family support systems to help make their first real estate purchase.”
By Garry Boulard
