Since 2013, the National Association of REALTORS® has produced the Home Buyers and Sellers Generational Trends Report. This report provides insights into differences and similarities across generations of home buyers and sellers. The home buyer and seller data is taken from the annual Profile of Home Buyers and Sellers.
- First-time buyers made up 26% of all home buyers, a decrease from 34% last year. Seventy percent of Younger Millennials and 46% of Older Millennials were first-time home buyers. Behind these groups, 21% of Gen Xers were also first-time home buyers.
- Baby Boomers, both Younger Boomers and Older Boomers, made up the largest generation of home buyers at 39%.
- Gen Xers had the highest household incomes of any generation at $114,300 in 2022, followed by Older Millennials with a median household income of $102,900.
- The Silent Generation had the highest share of married couples at 68%. The highest percentage of single female buyers was among Gen Z at 31%. The highest share of unmarried couples were Younger Millennials at 20%.
- 31% of all buyers had children under the age of 18 living at home. Seventy percent of Older Millennials had at least one child under the age of 18 residing in the home.
- 14% of home buyers purchased a multi-generational home to take care of and spend time with aging parents because children over the age of 18 were moving back and for cost savings. Eighteen percent of Older Boomers purchased a multi-generational home. Gen Xers comprised the second largest share at 17%.
- Gen Xers remain the most racially diverse group of buyers in 2022. Twenty-three percent of this group of buyers identified as Hispanic/Latino, Black/African American, or Asian/Pacific Islander.
Let's dive into the nitty-gritty of this article. The National Association of REALTORS® (NAR) has been consistently delivering valuable insights through its Home Buyers and Sellers Generational Trends Report since 2013. As an enthusiast deeply entrenched in real estate trends and demographic patterns, I can attest to the reliability of this report and its significance in understanding the dynamics of home buying and selling across different age groups.
Now, let's break down the key concepts and insights from the provided article:
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Generational Trends:
- The report categorizes home buyers and sellers into different generations, including Younger Millennials, Older Millennials, Gen Xers, Baby Boomers (Younger and Older), and the Silent Generation.
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First-Time Buyers:
- The percentage of first-time home buyers decreased from 34% to 26% from the previous year.
- Younger Millennials constituted 70% of first-time home buyers, while Older Millennials accounted for 46%.
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Home Buyer Distribution:
- Baby Boomers, both Younger and Older, comprised the largest share of home buyers at 39%.
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Income Disparities:
- Gen Xers boasted the highest household incomes among all generations, with a median income of $114,300 in 2022. Older Millennials followed with a median household income of $102,900.
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Marital Status:
- The Silent Generation had the highest percentage of married couples at 68%.
- Gen Z had the highest share of single female buyers at 31%, while Younger Millennials had the highest share of unmarried couples at 20%.
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Buyers with Children:
- 31% of all buyers had children under the age of 18 living at home.
- Seventy percent of Older Millennials had at least one child under the age of 18 residing in the home.
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Multi-generational Homes:
- 14% of home buyers purchased multi-generational homes, often to care for aging parents or for cost savings.
- Older Boomers led in this category with 18%, followed by Gen Xers at 17%.
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Racial Diversity:
- Gen Xers emerged as the most racially diverse group, with 23% identifying as Hispanic/Latino, Black/African American, or Asian/Pacific Islander.
These findings reflect not just the cyclical trends in the real estate market but also the nuanced preferences and behaviors of different generations in the home buying and selling process. If you're interested in delving deeper, the full report is undoubtedly a treasure trove of information.
