Housing Market Heats Up Among Generations

A generation gap in buying power has intensified competition between millennials (ages 24–42) and baby boomers (ages 58–76).

Millennials have fallen behind baby boomers as the largest generation of home buyers for the first time in nearly a decade. Baby boomers now comprise 39% of home buyers compared to 28% of millennials, according to a recent National Association of Realtors^® (NAR) report.

NAR economist Dr. Jessica Lautz explains why this makes sense: "Baby boomers have the upper hand in the home-buying market. 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. They are living healthier and longer and making housing trades later in life."

Whether baby boomers opt to downsize locally or move to a new community, their savings enable them to outbid millennials and Gen Zers (ages 18–23). Younger buyers who are ready to buy will likely have a better chance of finding an affordable house if they're flexible about the size and location of the properties they're viewing.