Millennials are no longer the top generation buying homes, as a rapid increase in mortgage rates and other factors have sidelined a lot of first-time buyers since last spring and summer.
The National Association of Realtors this week released its latest demographic report, finding baby boomers, ages 58 to 76, last year made up 39% of homebuyers, an increase from 29% in 2021. Millennials, who are now 24 to 42 years old, had been the dominant homebuying generation prior to 2022 but last year made up 28% of homebuyers, quite a decline from the 43% observed in 2021.
Since the NAR’s 2014 report, millennials had been the top homebuying generation.
Jessica Lautz, deputy chief economist and vice president of research at the NAR, said the shift is likely owed to two major trends. First-time homebuying on the whole is down, and most millennials in the housing market are first-time buyers, she said, while boomers looking to buy their dream homes have equity built up from previous homeownership to be able to do so.
