Millennials Now Make Up Nearly Half of All Homebuyers

Millennials now make up 43% of homebuyers, the most of any generation, according to a new report from the National Association of Realtors—and that number is only predicted to rise in 2022. 

The NAR’s 2022 Home Buyer and Seller Generational Trends report notes that the share of millennial homebuyers in 2021 was up 37% over the prior year’s numbers, and adds that the generation is the one most likely to use the internet to find a home they ultimately purchase. They are also most likely to use a real estate agent, with 87% of all millennial buyers using one.

That number was also highest among younger millennials (23 to 31 years old), at 92%, and older millennials (32 to 41 years old), at 88%.

First-time homebuying among younger generations is also on the rise, with 81% of younger millennials purchasing for the first time. Forty-eight percent of older millennial buyers were first-time purchasers, conversely. 

“Some young adults have used the pandemic to their financial advantage by paying down debt and cutting the cost of rent by moving in with family.  They are now jumping headfirst into homeownership,” said Jessica Lautz, NAR’s vice president of demographics and behavioral insights. “While young buyers use new tech tools, they also use real estate agents at higher rates than other buyers to help find the right home and negotiate the terms of the transaction.”

Older millennials also purchased the biggest homes at 2,400 square feet, while Generation X had the highest median household income ($125,000), bought the most expensive home (at a median price of $320,000) and the second-largest homes at a size of 2,300 square feet.

The largest share of buyers purchased in suburbs (51%) and small towns (20%)—a metric that was true across all generations. The NAR report also noted that younger generations tended to move shorter distances when relocating, and said they expected to live in their homes for 10 years (versus 20 years for younger boomers).