Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the Inman Community and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!
Baby boomers have now surpassed millennials as the largest group of homebuyers, according to a new report released by the National Association of Realtors (NAR).
TAKE THE INMAN INTEL INDEX SURVEY FOR MARCH
NAR’s “Home Buyers and Sellers Generational Trends” found that over the past year, younger boomers (ages 60-69) and older boomers (ages 70-78) combined made up 42 percent of the market, the largest share of buyers.
Meanwhile, millennials — long considered the dominant homebuying generation — have dropped to 29 percent, down from 38 percent last year. Generation X buyers held steady at 24 percent, while Generation Z remains a small fraction at just 3 percent.
NAR | Age of homebuyers
Gen X buyers boasted the highest median income at $130,000, followed by older millennials at $127,000. According to Lautz, Gen Z has entered the market with the lowest household income.
Jessica Lautz | NAR Deputy Chief Economist
One of the most surprising trends, according to NAR Deputy Chief Economist Jessica Lautz, is the way boomers are paying for homes.
“In a plot twist, baby boomers have overtaken millennials — the largest U.S. population — to become the top generation of homebuyers,” Lautz said. “Half of older boomers and two out of five younger generations are purchasing homes entirely with cash, bypassing financing altogether.”
The cash-heavy approach is giving boomers a clear advantage over younger buyers who are more reliant on financing.
More than 90 percent of buyers under 44 financed their home purchase, with many relying on outside help. Among younger millennials (ages 26-34), 27 percent used a financial gift from family or friends to cover part of their down payment, while 13 percent of older millennials (ages 35-44) did the same.
NAR | Buyers who financed their home purchase
Buyers who depended on financing faced challenges securing approval, largely due to high rental costs, credit card debt and student loans. Among younger millennials, 43 percent reported having student loan debt with a loan balance of $30,000.
In comparison, 29 percent of older millennials carried student debt, but with a slightly higher average balance of $35,000.
Despite these affordability challenges, younger homeowners still found a way to maximize their investments. Younger millennials saw the strongest returns when it was time to sell, as 27 percent sold their homes for 101 percent to 110 percent of the list price and 13 percent sold for more than 110 percent of the list price.
Baby boomers also took the spot for selling homes, with the largest share of sellers at 53 percent.
