The Millennial generation now makes up a sizable 38% of the nation’s home buying market, outpacing all other age groups, according to just-released figures from the National Association of Realtors.
In a new study, Home Buyers and Sellers Generational Trends, it is noted that the huge Baby Boom generation, the birth of which spans the years 1946 to 1964, has seen a notable decline in home buying this year, dropping from the 39% they represented in 2023 to 31% now.
Demographers have noted that both groups are huge and will dominate both home buying and overall consumer trends for the immediate years to come, but the Millennials, representing roughly 88 million people, are undoubtedly the ones to watch.
The increase in Millennial home buying, said Jessica Lautz, deputy chief economist with the NAR, is largely attributable to “both younger Millennials stepping into homeownership for the first time, and older Millennials transitioning to larger homes that suite their evolving needs.”
The NAR report also notes a larger increase in first-time buyers this year, spanning all generations, with 32% securing a home for the first time—up from 26% in 2023.
In that category, perhaps not surprisingly, were the Millennials, comprising a very large 70% to 75% of the first-time market.
The new report also underlines the emergence of Generation Z, or those born between 1995 and 2010, as a real estate market force.
“Their demographics are emerging distinctly from other age groups,” remarked Lautz of the Generation Z buyers. “More than half are single buyers, outpacing all age groups of single men and single women, and they are almost most likely to identify as LGBTQ+.”
On the selling side, the Baby Boomers remain dominant, accounting for 45% of all generational sellers. The Boomers, said Lautz, are largely making their selling decisions based on moving into retirement living situations, right sizing their housing, or moving closer to relatives.
The Boomers are also a careful demographic: “Benefiting from longer periods of homeownership compared to other generations,” they approach transactions with “substantial equity, enabling strategic housing trades.”
Various studies have indicated that Millennials are willing to spend, even lavishly, for luxury items, but a report issued last month by the site Civic Science also revealed a generational thriftiness: some 35% of Millennials regularly shop at a Family Dollar or Dollar Tree, compared with less than 10% of the Baby Boomers.
By Garry Boulard