Millennials have been taken over by the Baby Boomers as the top homebuyers of 2023
Per the National Association of Realtors
Millennials used to make up the largest chunk of homebuyers, but in 2023, Baby Boomers overtook them, resulting in 39% of homebuyers this year. Gen Z buyers also saw an increase, reaching 4%.
In 2022, baby boomers only made up 29% of home buyers, but this year, this age group saw an increase of 10%. 30% of Gen Z individuals moved directly from living with family members to owning a home.
It was also found that when relocating, younger boomers aged 58 to 67 didn't mind moving greater distances. It was found that they were okay with moving the greatest distances, with the median being 90 miles away.
In 2021, older and younger millennials made up the largest chunk of homebuyers, with a 43% market share. In 2022, millennials only made up 28% of homebuyers.
NAR deputy chief economist and vice president of research, Dr. Jessica Lautz, gave a statement regarding how baby boomers bought the most homes and the state of the housing market.
Lautz: "The majority of them are repeat buyers who have housing equity to propel them into their dream home – be it a place to enjoy retirement or a home near friends and family."
Despite baby boomers making up the largest share of homebuyers, it was also reported that in January, US home sales were down 36.9% year-over-year, resulting in the 12th consistent monthly decline. This was also a new all-time low in over 12 years.
Mortgage applications for home purchases also fell to a 28-year low. This also came as monthly payments increased by 50% compared to a year ago during the time of the report.
During the time of the report, buyers also had to pay about $230 more a month on a 30-year fixed loan with a 20% downpayment for a $400,000 property.
See flow at unusualwhales.com/flow.
Other News:
- US home sales were down by 36.9% YOY in January, reaching their 12th consistent monthly decline
- Mortgage applications for home purchases fall to a 28-year low
Resources: