Baby Boomers make up the largest homebuying cohort in today’s for-sale market, accounting for 39% of all U.S. home purchases, according to the National Association of Realtors’ 2023 Home Buyers and Sellers Generational Trends report. While older generations are flourishing in a market characterized by low inventory, record-high home prices, and all-cash offers, the share of younger buyers closing on home purchases is falling.
The share of millennials who successfully closed on homes fell to 28% in 2022, while the percentage of first-time buyers dropped to 26% from 34% the year prior, Realtor.com reports.
“Many millennials could be looking at their boomer parents with a little envy this year,” says Jessica Lautz, the National Association of Realtors vice president of research. Boomers “were able to purchase their dream homes when millennials weren’t even able to find a home to compromise on.”
“Boomers have the money, and they have the housing equity, and they were able to win out on multiple-bid situations by either paying all cash or putting down a significant down payment,” Lautz says. “They’re not downsizing. Baby boomers are purchasing the same size of home or larger than what they were living in before.”
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