With younger millennials stepping into homeownership for the first time and older millennials transitioning to larger homes, the younger cohort has surged ahead to become the largest group of home buyers, according to the latest report from the National Association of Realtors.
The 2024 Home Buyers and Sellers Generational Trends report results mark a significant shift in the housing market’s demographic landscape.
Millennials, both younger (ages 25 to 33) and older (ages 34 to 43), now make up a combined 38% of the home-buying market, a substantial increase from 28% last year.
The share of baby boomers, comprising both younger boomers (ages 59 to 68) and older boomers (ages 69 to 77), comprises 31% after claiming 39% a year ago, the highest cohort.
The report showed a rise in first-time buyers across many generations, with 32% of all buyers purchasing for the first time, an increase from 26% last year.
Leading that charge were younger millennials, whose proportion of first-time buyers increased from 70% to 75% over the past year. Forty-four percent of older millennials and 24% of Generation X (ages 44-58) were first-time buyers.
“In parallel, the emergence of Generation Z (ages 18-24) in the housing market paints a picture of diversity and independence,” NAR said.
While this cohort only accounted for 3% of all buyers, an impressive 31% of Gen Z purchasers were single females – a proportion significantly higher than that observed in any other generation.
Boomers accounted for 45% of all sellers in 2023.
“Baby boomers continue to dominate the home-selling market as they make pivotal decisions regarding their retirement living situations, whether it’s right-sizing or moving closer to loved ones,” according to Dr. Jessica Lautz, NAR deputy chief economist and vice president of research.
“Benefiting from longer periods of homeownership compared to other generations, boomers approach these transactions with substantial equity, enabling strategic housing trades.”
Results are based on a 129-question survey mailed out by NAR in July 2023. The survey received 6,817 responses from primary residence buyers.
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