Millennials have emerged as the predominant demographic among home buyers, representing 38% of purchases, a notable increase from 28% last year. This development, highlighted in the National Association of Realtors® 2024 Home Buyers and Sellers Generational Trends report, indicates a demographic shift, with millennials overtaking baby boomers, who now represent 31% of the market, down from 39%. Dr. Jessica Lautz, NAR deputy chief economist, emphasized that this shift reflects the entrance of younger millennials into homeownership and older millennials moving to bigger homes to meet their changing needs.
The report also noted an increase in first-time home buyers, now at 32%, up from 26% previously. Younger millennials are particularly active, with 75% buying homes for the first time, up from 70%. Meanwhile, Generation Z is making its mark, especially single female buyers, who represent a significant 31% of Gen Z purchasers, the highest proportion among all generations.
On the selling side, baby boomers continue to lead, making up 45% of home sellers in 2023. Their long tenure in homes, often reaching 15 years, contrasts with the six-year average for older millennials. Despite market changes, 82% of all buyers still see purchasing a home as a sound financial investment, particularly younger millennials, 86% of whom share this sentiment.
Across the board, the majority of buyers and sellers express high satisfaction with their real estate agents, with many willing to use their services again or recommend them. NAR President Kevin Sears highlights the enduring appeal of homeownership as fundamental to personal and community prosperity and praises Realtors® for their critical role in guiding clients through the complexities of the housing market.
The findings are based on a survey distributed to 189,750 recent home buyers, with a 3.6% response rate, focusing on those who purchased their primary residence between July 2022 and June 2023.
For more information, read the original press release from: https://www.nar.realtor/newsroom/millennials-reclaim-position-as-largest-group-of-home-buyers