Key Highlights
- Baby boomers now make up 39% of home buyers – the most of any generation – an increase from 29% last year.
- Generation Z now makes up 4% of buyers, with 30% of Gen Z moving directly from a family member’s home into homeownership.
- When relocating, all generations are moving farther distances, with younger boomers (ages 58-67) moving the greatest distance at a median 90 miles away.
According to the latest study from the National Association of Realtors®, baby boomers now comprise the largest home buyer generation, surpassing millennials. The 2023 Home Buyers and Sellers Generational Trends report shows that the combined share of younger and older boomer buyers rose from 29% in 2021 to 39% in 2022, while the combined share of younger and older millennial buyers fell from 43% to 28% over the same period. The report also highlights that 26% of all buyers were first-time buyers, the lowest since the data has been tracked, and 4% of buyers were from Generation Z.
Despite being the largest home buyers, baby boomers also remained the largest home seller generation, accounting for 52% of home sellers in 2022. All generations agreed that the most common reason to sell was to be closer to friends and family. On average, buyers moved a median of 50 miles when relocating, up significantly from 15 miles the year prior.
The study also found that 86% of all buyers purchased their homes through a real estate agent, with younger boomers and Generation X being the most likely to use an agent. The top reasons for using an agent were to help find the right home to purchase, negotiate the terms of sale, and negotiate the price. The report shows that owning a home is viewed as a good investment, with 88% of all buyers reporting this sentiment.
