In 2024, baby boomers reclaimed their status as the largest group of homebuyers in the U.S., representing 42% of purchases while millennials fell to 29%. This decline from 38% in 2023 is attributed to rising mortgage rates, which limited millennials' purchasing power. Despite this setback, millennials continued to lead as first-time homebuyers at 24%. Meanwhile, Gen Xers accounted for 24% of buyers, and Gen Z significantly lagged behind at 3%. These dynamics highlight a shifting landscape in the housing market influenced by economic factors and generational wealth disparities.
Millennials' homebuying share dropped from 38% to 29%, while baby boomers reclaimed dominance with 42%, indicating a significant shift in the housing market dynamics.
The NAR report indicates that while Millennials remain the largest group of first-time homebuyers, their overall market presence has declined significantly due to rising mortgage rates.
Rising mortgage rates, which averaged 6.65% for a 30-year fixed loan, had a substantial impact on millennials' buying power, effectively pushing them out of the market.
Despite a drop in overall buyers, millennials still represented the largest segment of first-time homebuyers at 24%, illustrating their ongoing importance in the housing market.
Collection
[
|
...
]