The National Association of REALTORS® 2023 Home Buyers and Sellers Generational Trends report reveals that baby boomers have surpassed millennials as the largest generation of home buyers. The study found that the combined share of younger and older boomer buyers rose to 39% in 2022, up from 29% the year before, while millennials saw their combined share fall from 43% in 2021 to 28% last year. Generation Z, ages 18 to 23, now makes up 4% of home buyers, with 30% moving directly from a family member's home into homeownership.
The report also found that 26% of all buyers were first-time buyers, the lowest since NAR began tracking the data, and a decrease from 34% last year. Buyers moved a median of 50 miles when relocating, the highest ever recorded, up from 15 miles last year.
Four Key Takeaways From the Report Are:
1. Baby boomers have become the largest generation of home buyers, surpassing millennials. This demographic shift has important implications for the real estate industry, as baby boomers tend to be repeat buyers with housing equity to propel them into their dream homes.
2. First-time home buyers are becoming less common, with only 26% of all buyers being first-time buyers, the lowest since NAR began tracking the data. This could be due to various factors, including rising home prices and a tight supply of homes for sale.
3. Buyers are moving farther distances than ever before, with a median distance of 50 miles when relocating. This trend is driven by various factors, including changing demographics, job opportunities, and lifestyle preferences.
4. Real estate agents continue to play a critical role in the home-buying process, with 86% of all buyers purchasing their homes through an agent. Buyers from all generations agree on the top reasons for using an agent, including help finding the right home to purchase, negotiating the terms of sale, and negotiating the price.
Overall, the report provides valuable insights into the changing demographics of home buyers and sellers, as well as the key factors driving their decisions. By understanding these trends, real estate professionals can better serve their clients and make informed decisions about their own businesses.
