Generational Trends of Home Buyers and Sellers

Generation Z

This year, buyers and sellers aged 18 to 24—part of Generation Z—constituted 3% of buyers and 2% of sellers. While these figures are consistent with last year’s report, the sample size was too small to identify distinct trends. Members of this group are entering the housing market with the lowest household incomes, and most are not yet married or have children under 18 in their homes. Similar to young millennials, Generation Z buyers tend to purchase older homes compared to other age groups.

Millennials

Millennials, defined as buyers aged 25 to 43, make up the largest segment of homebuyers, accounting for 38% of the market. This group is divided into younger millennials (25 to 33 years) at 17% and older millennials (34 to 43 years) at 21%.

Seventy-five percent of younger millennials and 44% of older millennials are first-time homebuyers.
Older millennials represent the highest share of married couples (66%), while younger millennials have the highest proportion of unmarried couples (19%) purchasing homes.
Younger millennials are the most educated demographic, with 80% holding at least a bachelor’s degree.
Nearly a quarter (24%) of younger millennials transitioned directly from a family member’s home to homeownership.
Proximity to their workplace and commuting costs are significant factors influencing their home-buying decisions.

Generation X

Generation X buyers, aged 44 to 58, represent 24% of recent homebuyers.

This group boasts one of the highest median household incomes at $126,900 in 2023.
They purchase the second-largest homes, with a median size of 1,940 square feet.
Fifty-eight percent of Generation X buyers are married couples, benefiting from dual incomes.
They are the most likely to purchase multi-generational homes (19%) and are frequently motivated by job relocations.
Generation X is also one of the most racially and ethnically diverse groups, with 28% identifying as a race other than white/Caucasian.

Baby Boomers

Baby boomers are categorized into younger boomers (59 to 68 years) and older boomers (69 to 77 years), representing 19% and 12% of recent buyers, respectively.

Many boomers buy homes to be closer to friends and family, retire, or downsize.
They are more likely than other groups to purchase homes in small towns, with younger boomers showing a preference for rural areas.
Younger boomers expect to own their homes the longest (20 years), while older boomers purchase the newest homes on average.
Younger boomers typically move the second farthest, with a median relocation distance of 50 miles; older boomers moved a median of 49 miles.

The Silent Generation

Comprised of individuals aged 78 to 98, the Silent Generation accounts for just 4% of buyers.

Many in this group are retired, leading to the second-lowest median household incomes.
They typically purchase smaller homes, with a median size of 1,800 square feet, and are often motivated by proximity to friends and family.
This generation is most likely to purchase in senior-related housing (33%) and is the second most likely to buy new construction homes (18%).
Convenience to healthcare facilities is a key factor in their neighborhood selection.
They have the highest percentage of military veterans (40%) and the shortest home search length, with a median of six weeks.

Financing a Home Purchase

Eighty percent of homebuyers finance their home purchases, though this percentage declines with age. Younger buyers typically rely on savings for their down payments, while older buyers often use proceeds from previous home sales.

Twenty-four percent of younger millennials received financial assistance for their down payment from friends or relatives.
Delays in purchasing due to debt are common among older millennials, Generation X, and younger boomers, with a median delay of five years.
Student loan debt is a significant barrier: 41% of younger millennials carry a median balance of $30,000, while 35% of older millennials have a median balance of $40,000.
Older boomers have a lower incidence of student loan debt (4%) but still carry a median balance of $20,100, often due to their children’s education expenses.

Selling a Home

Baby boomers dominate the seller demographic, comprising 45% of home sellers.

Sellers aged 69 to 77 are the most likely to downsize.
Motivations for selling differ: baby boomers and the Silent Generation sell to move closer to friends and family or downsize, while millennials sell because their homes are too small or due to family changes.
Younger and older boomers tend to own their homes for an average of 15 years before selling.

Real Estate Agents and Brokers

Real estate agents and brokers remain the most valuable resource for homebuyers and sellers across all generations.

While the internet is widely used for home searches, agents assist buyers in finding suitable homes, negotiating terms, and setting competitive prices.
Sellers rely on agents to market their homes effectively, meet specific timelines, and optimize home improvements to maximize sale prices.
Agents remain the top source of information, followed by mobile and tablet search devices.