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(News Nation) – Baby boomers outperform millennials and buy more homes than other generations, according to a report by the New National Association of Realtors.
With a reversal of generational trends, the baby boomer generation has accounted for 42% of all home buyers over the past year, while millennials accounted for 29%. A year ago, millennials accounted for 38% of all buyers compared to 31% of baby boomers.
Millennials are the largest generation cohort in the United States, losing ground despite entering a major home buying year. This shows that inventory, mortgage fees rise, and home price records make it more difficult for younger buyers to break into the housing market.
Another metric for the affordability crisis: First-time home buyers’ share fell to 24% from 32% last year.
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The rise in mortgage rates has slowed home sales, but older buyers who are more likely to pay in cash are not affected by the shift.
“What’s impressive is half of the older boomers. [ages 70-78] Two out of five young boomers [ages 60-69] Jessica Rautz, NAR’s deputy chief economist and vice president of research, said in a statement.
Meanwhile, more than 90% of buyers under the age of 44 have funded that they purchased from home, the report says.
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Millennials were also more likely to rely on family support. Approximately 27% of young millennials (ages 26-34) and 13% of older millennials (ages 35-44) cited gifts from relatives or friends as one of the sources of their down payments.
They were enthusiastic buyers, but the baby boomer generation made up the biggest share of sellers at 53%. According to Redfin, it’s somewhat encouraging considering that the empty nest baby boomers own nearly three of the 10 large homes in the US.
Nearly 30% of baby boomers in the latest NAR report say the main reason for purchasing is a desire for a small home.
Some experts speculate that “silver tsunami” can boost the supply of homes as the waves of older homeowners begin to shrink. Others are not optimistic because supply and demand do not match on the map.
NAR findings highlight more and more generational disparities as young Americans struggle to buy a home that their parents find far more accessible.
Recent data from the Federal Reserve highlights the age of division into the US economy. Baby Boomers owned about 51% of all households’ wealth at the end of 2024, while millennials accounted for around 10%, with XERS accounted for more than a quarter.
NAR’s latest generation trend report is based on survey responses from 5,390 home buyers who purchased major homes between July 2023 and June 2024.
According to NAR, recent shares of home buyers by generation:
Baby Boomer Generation (60-78 years old): 42% Millennial Generation (26-44 years old): 29% Generation X (45-59 years old): 24% Silent Generation (79-99 years old): 4% Generation Z (18-25 years old): 3%
Because it is rounded, the total will not be 100%.
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