Baby boomers (aged 60 to 78) are back as the largest generational group of American home buyers, replacing millennials (aged 26 to 44).
Generation X buyers (aged 45 to 59) account for almost 25 percent of home sales.
“What’s striking is that half of older boomers and 2 out of 5 younger boomers are purchasing homes entirely with cash, bypassing financing altogether,” Jessica Lautz, NAR deputy chief economist and vice president of research, said in a statement sent to The Epoch Times.
The statistics emanated from an NAR July 2024 survey sent to almost 168,000 recent home buyers. It also found that more than 90 percent of buyers aged 44 and younger financed their home purchase, while 27 percent of younger millennials (aged 26 to 34) reported using a gift from family or friends to help with their down payment. About 25 percent of that group also moved directly from a family member’s home upon buying.
The number of first-time homebuyers was down this year by almost 10 percent, with 71 of first timers comprised of younger millennials, while older millennials tended to be repeat buyers. “Older millennials are buying bigger and newer homes with larger down payments than their younger counterparts,” Lautz said.
Bianca D’Alessio, an associate broker with Nest Seekers International in Manhattan, told The Epoch Times that baby boomers are also dominating the greater New York Metro area market.
“This goes beyond the empty nester trend—we’re seeing so many multi-generational purchases involving grandparents and parents with young people children now sharing the same household,” she said.
“There’s an affordability crisis with younger generations, so now boomers are selling their large homes and buying property together with their adult children.”
Many baby boomers are downsizing and pooling funds with their children to purchase single-family homes, townhomes or three-bedroom condos.
“There’s definitely a shift in buyer mentality as younger generations realize they don’t need to have that picture-perfect, instant gratification for their first home,” D’Alessio said.
Her recent clients include grandparents who are buying an apartment in Park Slope, Brooklyn, with their adult children and grandchildren.
“This means they can help out with childcare, which also saves money,” D’Alessio said.
“Plus, so many buildings now have great amenities like a playroom for kids, a community room, and fitness center that give people more space.”
She said she recently sold another Brooklyn property to baby boomers who moved from Connecticut to buy a property with their adult daughter.
Sometimes families opt for multi-generational single-family homes in suburban New York City or Long Island. “There’s actually something very sweet about this as family units are coming back together again,” D’Alessio said.
Meanwhile, Generation X home buyers continued to outpace all generations financially with a median household income of $130,000, followed by older millennials at $127,500. Gen X also led the way in multigenerational home buying, with 21 percent of this group opting for two-family homes that could be shared with their children or parents.
Gen Z, the youngest group (aged 18—26) comprised just 3 percent of buyers and 2 percent of sellers.
However, within that group, single female home buyers represented the largest segment at 30 percent, and they tended to buy older homes.
Across all generations, sellers remained in their homes for a median of 10 years. Younger millennials, however, typically sold after just 5 years, while older baby boomers stayed in their homes for 16 years.
Younger baby boomers were more likely to purchase in a small town, while older baby boomers tended to buy in a suburb or subdivision.
Some 90 percent of all sellers worked with a real estate agent and those homes typically sold for 100 percent of the final list price.Buyers representing the Silent Generation (aged 79 to 99) had one of the smallest share of buyers at just 4 percent, but the highest percentage of military veterans at 35 percent. They also reported the lowest median household income and purchased smaller homes close to family and friends. Senior housing comprised 27 percent of purchases.
More than 74 percent of all home buyers financed their home purchase, with older buyers using proceeds from the sale of a previous residence toward the down payment, and younger buyers depending on savings or financial assistance from family or friends for the down payment.
Across the generations, the biggest reason for the desire to own a home was to be closer to family and friends. Other top reasons included a change in family situation (marriage, divorce, children), desire for a smaller home, retirement, a job-related location, and financial security.
Single detached homes were the most commonly purchased by all generations, with older Baby Boomers leaning more toward condos, which require less maintenance. Younger baby boomers were more likely to purchase new homes.
Regarding home sizes, the survey found that 1,900 square feet was the typical amount of space required, which included 3 bedrooms and 2 bathrooms. Overall, buyers expected to live in their homes for a median of 15 years.
