Story at a glance
- Millennials have surpassed Baby Boomers as the largest group of homebuyers.
- Baby Boomers are still the largest group of home sellers, comprising 45 percent of them.
- Millennials now make up 38 percent of the homebuying market.
Millennials have regained their former spot as the largest group of homebuyers in the United States, according to a report from the National Association of Realtors (NAR) released Tuesday.
There has been a generational tug-of-war between Millennials and Baby Boomers for the top home-buying contingent for the past few years.
Baby Boomers surpassed Millennials last year as the largest share of homebuyers at 39 percent, a 10-point increase from 2022, according to NAR.
Millennials now make up 38 percent of the home-buying market, a sizeable jump from last year’s 28 percent, according to the report.
Meanwhile, Baby Boomers now make up 31 percent of that market.
Millennials have struggled to buy homes due to high amounts of debt and a lower net worth than their parents.
This reversal of last year’s trends comes as a surprise to some housing experts.
“I had expected that because Baby Boomers are entering in, if not solidly in, their retirement years that they would still dominate the homebuying market,” said Jessica Lautz, NAR Deputy Chief Economist.
Baby Boomers still make up the largest percentage of home sellers at 45 percent, according to the report.
Typically, Boomers choose to move out of their homes after living there for about 15 years and they do so with a lot of housing equity, Lautz told The Hill.
This allows Boomers to make housing trades, but many are buying new homes with cash, giving them an edge over prospective buyers of different generations.
“If there is a multiple offer situation, that Baby Boomer is going to continue to win,” said Lautz. “That was surprising to me, that even though sellers are more likely to be Baby Boomers we’re still seeing that Millennials are eking into the market as first-time home buyers.”
Published on Apr 03,2024