Millennials top the charts when it comes to buying homes
A report from the National Association of REALTORS shows the Silent Generation makes up the smallest percentage of recent buyers and sellers.
The National Association of REALTORS (NAR) has released their 2021 report on home buyer and seller generational trends and, according to the report, millennials (ages 22- 40) continue to make up the largest share of home buyers; which has been the case since 2014.
The report from NAR splits millennials into two groups: Older millennials (ages 31-40), who make up 23% of buyers, and younger millennials (ages 22- 30), who make up 14%, for a combined total of 37% of home buyers.
This year’s report is the first since its creation in 2013 that also includes information about Gen Z buyers and sellers between 18 and 21 years old. These young adults only make up 2% of buyers and sellers, NAR says, but they hypothesize this is an indication that homeownership is important to that generation, and future reports could contain a larger sample of data for that group.
Gen Xers made up 24% of recent homebuyers, according to the report, and this generation has the highest median income at $113,300 (as of 2019). They also tend to purchase the largest houses, with the median size being 2,100 square feet. This group was also the most likely to purchase a multi-generational home among the groups examined in the report.
Those in the Silent Generation (ages 74- 95) comprise the smallest group of recent home buyers at just 5%. The report attributes this to the reality that many in that age bracket are retired, or have at least scaled back their employment, and therefore have the lowest median household incomes. NAR says this group is the most likely to purchase senior-related housing and to purchase a home in a small town.
When it comes to selling, baby boomers lead the pack. According to the report, boomers (ages 56- 74) make up 43% of recent home sellers. Those in this generation, NAR found, are most likely to trade for a home very similar size-wise (within 100 square feet) to their previous home, and many are selling in order to move closer to friends and family as they reach retirement age.
You can view the NAR’s report, which delves more deeply into the characteristics of home buyers and sellers, in its entirety here.