The real estate landscape has continuously evolved, with each generation showcasing distinct trends and preferences when it comes to home buying and selling.
In the most recent report for 2023, Generation Z, comprising individuals aged 18 to 23, displayed an increased presence in the market, accounting for four percent of buyers and three percent of sellers. Notably, they purchased homes at a median household income of $50,400 and gravitated towards smaller properties, typically under 1,500 square feet. A striking 30% of Gen Z buyers transitioned directly from a family member's home into homeownership, with proximity to friends and family being their primary consideration in choosing a home location.
Contrasting this, Millennials, who had previously dominated the buyer demographic from 2014 to 2022, experienced a slight decline in their market share. Younger Millennials (24 to 32 years old) and Older Millennials (33 to 42 years old) collectively constituted 28% of all buyers. 70% of Younger Millennials and 46% of Older Millennials were first-time homebuyers, showcasing a higher rate than other age groups. Interestingly, while Older Millennials had a substantial share of married couples (66%), Younger Millennials led in unmarried couple home purchases (20%).
Gen Xers, aged 43 to 57, represented 24% of recent homebuyers and held the highest median income at $114,300 in 2021. They also showed a strong inclination towards multi-generational homes (17%) and prioritized proximity to job/school/transit as a crucial factor in their homebuying decisions.
Further, Baby Boomers showcased diverse preferences. Younger Baby Boomers (58 to 67 years old) and Older Baby Boomers (68 to 76 years old) constituted 23% and 16% of recent buyers, respectively. Their motivations spanned a desire for smaller homes, proximity to friends and family post-retirement, and multi-generational living. Older Boomers leaned towards newer homes (built in 1996) and anticipated longer homeownership durations of around 20 years.
In conclusion, the trends highlighted underscore the diverse needs and preferences of each generation in the real estate market. Understanding these distinctions is vital for both buyers and sellers to navigate and capitalize on opportunities in the ever-evolving housing landscape.
