Currently Reading

How Baby Boomers Are Taking Over the Housing Market

Advertisement
Housing Markets

How Baby Boomers Are Taking Over the Housing Market

Older buyers are competing for new homes and millennials can't keep up.


October 20, 2021

More millennials may be entering the housing market as they reach their peak home-buying years, but a report by Zillow shows that buyers are trending older, meaning that baby boomers are active players in a competitive real estate market.

First-time buyers are struggling to beat out their older competitors, who may be able to tap into equity gains from previous homeownership or put down larger cash offers which younger buyers can’t match.

The past year's frenzied housing demand likely has more to do with the demographic makeup of America than a onetime, pandemic-driven boom, a new Zillow® analysis of the age, sex, race and income of home buyers over a decade reveals. Millennials and baby boomers — two of the biggest generations in U.S. history — are in the market for homes in a big way.

Even as millennials are the biggest players in the U.S. housing market, buyers are trending older. The median age of a recent buyer — somebody who bought a home in the past year — was 44 in 2019, up from 40 in 2009. That's largely because baby boomers, who make up a big share of the population, are also more active in the housing market than those their age ten years ago. The share of recent buyers who are 60 years and older grew 47% from 2009 to 2019. Over the same period, the share of recent buyers ages 18–39 fell 13%.ii

This means that millennials, already grappling with skyrocketing housing costs from pre-pandemic housing trends and student debt that make saving for a down payment a steep hill to climb, also generally have more competition from their parents' and grandparents' generations than their predecessors did. That dynamic is likely one reason the share of buyers who were buying their first home has trended down from 46% in 2018 to 37% in 2021. 

Read More

Related Stories

Housing Markets

Third Quarter Metro Affordability Report Reveals a Tight Market for First-Time Buyers

Despite major supply shortages driving up competition, price growth deceleration signals more market balance in the future

Market Data + Trends

More Millennials Entering Mobile Home Market to Avoid Record-High Housing Prices

Not only are mobile homes affordable housing options for first-time buyers, but they also accommodate on-the-go lifestyles for the post-pandemic house hunter

Housing Markets

Metro Denver Reports Low Housing Inventory in November

Ongoing housing shortages are creating a competitive Denver market

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.