REAL ESTATE TRENDS 2023 :
t h e n a r k n o w s
IN 2013 , THE NATIONAL ASSOCIATION OF REALTORS ® ( NAR ) STARTED PRODUCING AN ANNUAL REPORT ON BUYING AND SELLING TRENDS ACROSS GENERATIONS . IT IS FULL OF GREAT INFORMATION !
TREND SHIFT ALERT – BABY BOOMERS BUY MORE HOMES THAN MILLENNIALS
FEWER FIRST-TIME HOMEBUYERS
For the first time since the 2014 report , Millennials ( age 24-42 ) weren ' t the largest group buying homes . Baby Boomers took over that spot in the 2023 report , with a 39 % share . This breaks out into 23 % Younger Boomers ( 58 to 67 years old ) and 16 % Older Boomers ( age 68 to 76 ). NAR deputy chief economist Dr . Jessica Lautz interprets the change this way , saying , " Baby Boomers have the upper hand in the homebuying 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 ." Wondering why Boomers chose to buy at this particular moment ? About 40 % said it was just the right time .
If most homebuyers were Boomers , it ' s not surprising that there were fewer first-time homebuyers overall . Older buyers are more likely to be homeowners than renters , so it ' s not their first time around the homebuying block . The breakout shows that only 8 % of first-time homebuyers were Boomers , while 58 % of Millennials were buying their first home . Gen Xers ( age 43-57 ) still make up a significant portion of first-time homebuyers at 21 %. The year-to-year drop in all first-time homebuyers ( 2022 report to 2023 report ) was 8 %, falling from 34 % to 26 %. It ' s the lowest percentage since NAR began gathering this data .
Source : the National Association of Realtors ® ( NAR ) 3