MORTGAGE MATTERS

2 min read

Jun 2021

New Report: Top Generational Buyer and Seller Trends in 2021

WHAT YOU'LL LEARN

How Millennial homebuying is broken down by age

What housing trends are happening with Baby Boomers and Gen Xers

How others have been financing their homes in the last 12 months

WHAT YOU'LL LEARN

How Millennial homebuying is broken down by age

What housing trends are happening with Baby Boomers and Gen Xers

How others have been financing their homes in the last 12 months

The housing market has seen a great deal of shifting over the last 18 months, and with that, we are seeing many trends pop up between different generations. Each year, the National Association of REALTORS® produces the Home Buyers and Sellers Generational Trends Report which provides insights into differences and similarities across generations of home buyers and sellers – and we are here to break down some of the top stats for you!

Millennials are making moves

Literally. Millennial buyers between the ages of 22 to 30 years (Younger Millennials) and buyers from 31 to 40 years (Older Millennials) continue to make up the largest share of home buyers at 37%. Broken down even further, Older Millennials make up for 23% of that group and Younger Millennials comprise 14% of the share of home buyers. Millennials have been the largest share of buyers dating all the way back to the 2014 report.

Of Younger Millennial homebuyers, 28% were found to have moved directly from their family home into their own first home – using that time at home to save and learn to budget wisely. When it came time to buy, proximity to work and the cost of commuting were top considerations.

Meanwhile, home buyers who range from 41 to 55 (Gen Xers) consisted of 24% of recent home buyers – which is still certainly a notable portion of buyers. This age group continues to be the highest earning home buyers with a median income of $113,300 in 2019. Over the last year or so, prospective home buyers with little or no cash down options have entered bidding wars with Gen Xers who have a higher income on average – and therefore, likely have more cash on hand to make an attractive offer to a seller.

The graphs below outline the average age of home buyers over the last century, as well as the share of buyers and sellers by generation. This is a great snapshot of how different age groups are shaping the current housing market.

ageofHomebuyers

Statistics reported from the 2021 NAR Home Buyer and Seller Generational Trends report.

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Statistics reported from the 2021 NAR Home Buyer and Seller Generational Trends report.

Don’t forget about the Baby Boomers!

These are the homeowners who were born between the late 1940s and mid-1960s. And they make up the largest share of sellers at 43%. Many speculate that this is because these folks are seeing the opportunity to sell their current homes in this favorable market, make money from the sale, and then either live debt free or go into a new investment with some major liquidity.

As buyers, the Younger Baby Boomers (ages 56 to 65) purchased for various reasons, especially being able to own if they didn’t previously and a desire to live in an area closer to loved ones. Older Baby Boomers were most likely to purchase a newly built home at 19% - likely using the profits from their recent sale to help fund the build.

Financing is about the same

Most buyers are continuing to finance their home purchase like years past. About 87% of home buyers financed their home purchase this past year. So, if you don’t have a ton of cash on hand, or maybe any at all, don’t stress – there may be options for you!

According to the study, 28% of Young Millennials used a financial gift from a loved one to aid in the purchase of the home. However, this may not be feasible for everyone – and mortgage companies understand, that's why there are options! After all, we know loans aren't a one-size-fits-all.

Reach out to a mortgage professional today to see what your next steps toward homeownership might be!

Statistics reported from the 2021 NAR Home Buyer and Seller Generational Trends report. View here: https://cdn.nar.realtor/sites/default/files/documents/2021-home-buyers-and-sellers-generational-trends-03-16-2021.pdf.