Kevin Sears President | Official website
Millennials have surged ahead to become the largest group of home buyers, marking a significant shift in the housing market's demographic landscape, according to the latest report from the National Association of Realtors®.
"The generational tug-of-war between millennials and baby boomers continued this year, with millennials rebounding to capture the largest share of home buyers," said Dr. Jessica Lautz, NAR deputy chief economist and vice president of research. "This notable rise is attributed to both younger millennials stepping into homeownership for the first time and older millennials transitioning to larger homes that suit their evolving needs."
The report underscored a rise in first-time buyers across many generations, with 32% of all buyers purchasing for the first time, an increase from 26% last year. Leading the charge were younger millennials, whose proportion of first-time buyers increased from 70% to 75% over the past year.
"Gen Z buyers are entering the housing market, and their demographics are emerging distinctly from other age groups," Lautz said. "More than half are single buyers, outpacing all age groups of single men and single women, and they are also most likely to identify as LGBTQ+."
"Baby boomers continue to dominate the home-selling market as they make pivotal decisions regarding their retirement living situations, whether it's right-sizing or moving closer to loved ones," Lautz said.
"In navigating the complexities of the market, buyers and sellers continue to rely on agents who are Realtors® for their expertise and guidance, underscoring the invaluable service they provide in bringing dreams of homeownership to life," stated NAR President Kevin Sears.
The enduring appeal of homeownership remains strong, with 82% of all buyers considering a home purchase a good financial investment. Across all generations, nine out of ten buyers indicated they would either definitely (75%) or probably (15%) enlist their real estate agent's services again or recommend them to others.
The report also highlighted that baby boomers remained the largest generation of home sellers at 45% in 2023. The tenure of homeownership before making a sale varied significantly by generation, with older millennials typically selling their homes after just six years, contrasting sharply with other generations who typically stayed in their homes for 10 to 15 years.
The National Association of Realtors® is America's largest trade association, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries.
