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A comprehensive analysis by the National Association of Realtors (NAR) provides compelling evidence about the demographics of 2022’s home buyers, painting a vivid picture of who is likely to be active in the 2023 summer housing market.
No single age group or generation holds a monopoly on homeownership, with representatives from Gen Z to the Silent Generation found among the 2022 home buyers.
Let’s delve into the details.
- Starting with the youngest demographic, Gen Z, 22 years and under, made up 2% of the 2022 home buyers. With a median age of 18, these individuals were just beginning their homeownership journey, often with familial support.
- Millennials or Gen Y, split into younger (23-31 years) and older (32-41 years) sections, represented a significant portion of home buyers. The younger set, with a median age of 28, constituted 18% of buyers, whereas the older section, at a median age of 36, represented a substantial 25% of all home purchases. This shows that Millennials, now well-settled in their professions, are taking significant steps toward owning property.
- Gen X, those aged between 42 to 56, accounted for 22% of home buyers in 2022. With a median age of 49, this generation typically sees their children leaving home, resulting in lifestyle changes that may include relocation or downsizing.
- Baby Boomers, divided into younger (57-66 years) and older (67-75 years) groups, also held a prominent position in 2022’s property market. The younger Boomers, with a median age of 62, made up 17% of the buyers, while the older Boomers, with a median age of 70, constituted 12%. This group’s purchasing behaviors are often driven by retirement planning, downsizing, or the desire for vacation properties.
- Despite being the eldest, the Silent Generation (76-96 years) still made a significant contribution to the housing market, representing 4% of buyers, with a median age of 79. Their buying trends typically involve downsizing, moving closer to family, or transitioning to assisted living facilities.
So, who are the prospective home buyers this upcoming summer? Considering their significant activity last year, Millennials are likely to constitute a major segment. Moreover, Gen X and Boomers, given their distinct life stages, are expected to maintain their pivotal roles in the real estate market. Gen Z’s representation may witness a surge as more of them join the workforce and set off on their property ownership journey. Finally, we must not overlook the Silent Generation, who will continue to make adjustments to their living arrangements as they age but will likely represent a smaller % of the buyer pool moving forward.
