Millennials Are Now Buying More Houses Than Baby Boomers
Boomers are no longer the top generation of home buyers. A new report shows that Millennials have taken the lead as the group buying the most homes in America. However, baby boomers are still the top generation when it comes to selling homes.
The information comes from the 2024 Home Buyers and Sellers Generational Trends report. This report looks at the buying and selling habits of different generations. Let’s explore how and why Millennials have become the top home buyers.
Millennials Lead Homebuying
Despite record-high housing prices, inflation, and stagnant wages, millennials now comprise the largest share of homebuyers in the U.S. They made up 38% of all U.S. homebuyers last year. This was a pretty steep increase since it was only 28% last year.
Boomers
Millennials dethroned the Baby Boomer generation as the generation with the most home buyers. Boomers saw their numbers decline from 39% to 31% in just one year.
First-Time Buyers Among Younger Millennials
Younger millennials, aged 25 to 33, constitute a high proportion of first-time home buyers. A whopping 75% of them are entering the market for the first time. On the other hand, older millennials were 44% of first-time home buyers.
Younger Millennials Education
Younger millennials stand out as the most educated group, with 80% having at least a bachelor’s degree. This suggests a correlation between higher education and younger generations’ ability to enter the housing market.
Marital Status Among Millennials
Older millennials show a higher share of married couples, with 66% purchasing homes together. In contrast, younger millennials have a higher percentage of unmarried couples at 19%. People nowadays are getting married later than ever.
Millennial Population
According to Pew Research, there are about 72.2 million millennials in America. This definitely contributes to their high percentage of home buying as compared to other generations.
Younger Millennials’ Housing Moves
About a quarter of younger millennials jumped straight from their family’s place to buying their own cribs. What matters most to them is job location and lower commute times.
Leading Home Sellers
Baby boomers keep their spot as the largest group of home sellers, comprising 45% of all sellers. Their decisions to sell are often driven by the desire to downsize for retirement or to relocate closer to friends and family.
Homeownership Tenure Among Baby Boomers
Baby boomers typically own their homes for 15 years before selling. This indicates a longer-term investment approach compared to younger generations. This also shows they prioritize stability and longevity over a quick buck.
Generation X: High-Earning Home Buyers
Generation X, aged 44 to 58, stands out as one of the highest-earning groups of home buyers, with a median income of $126,900. This financial stability enables them to purchase larger homes, with a median size of 1,940 square feet, which fits their family needs.
Multi-Generational Home Purchases By Generation X
Generation X buyers show a higher propensity to purchase multi-generational homes, with 19% opting for such places. This trend reflects their commitment to family and support across different generations.
Silent Generation’s Unique Selling Patterns
The Silent Generation, aged 78 to 98, represents a smaller share of sellers but displays unique selling behaviors. They are more likely to sell to be closer to friends and family or to downsize their homes for retirement.
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