Baby Boomers are the Top Home Buyers and Sellers in 2022
According to the latest National Association of Realtors (NAR) report, baby boomers have surpassed millennials as the largest generation of homebuyers and sellers in 2022. The combined share of both younger and older baby boomer buyers has risen to 39%, up from 29% in the previous year, while millennials’ combined share has fallen from 43% in 2021 to 28% in 2022.
Housing equity and a desire for a dream home have propelled baby boomers into dominating the market. They are repeat buyers, motivated by being closer to friends and family or finding a place to enjoy retirement. Older boomers sold their homes after an average of 16 years, while all generations expected to live in their homes for at least 15 years, with Generation Z expecting to stay the longest.
Remote Work Influences Real Estate Trends
The pandemic has changed real estate trends across generations. With remote work options available, people have moved farther away from city centers. In Ohio, there has been an influx of people moving due to its affordable housing, while buyers have moved a median distance of 50 miles when relocating.
Younger generations are relocating for work or wanting larger homes, while older generations often sell their homes due to retirement. Younger baby boomers dominated the home-selling market in 2022.
Real Estate Agents Assist Buyers and Sellers
Real estate agents play a critical role in real estate transactions for both buyers and sellers. About 86% of all buyers purchased their homes through real estate agents who helped them find the right home, negotiate terms of sale or purchase price.
Younger boomers and Generation X had the highest percentage of buyers who relied on real estate agents. Buyers from all generations agreed that the top reasons for using an agent were assistance in finding or selling a home, negotiating terms of sale, and price.
Generation Z Takes First Steps into Homeownership
Generation Z makes up 4% of homebuyers, with 30% moving directly from a family member’s home into homeownership. The majority of buyers in all other generations were repeat buyers, motivated by housing equity to buy their dream homes.
Despite being a small percentage of buyers, Generation Z is optimistic about homeownership and expects to live in their newly purchased homes for the longest periods—19 years.
Conclusion
The 2022 NAR report shows a shift in the US real estate market. Baby boomers have emerged as the top homebuyers and sellers. Remote work has influenced buyer trends, with people moving farther away from city centers; real estate agents play a crucial role in transactions for both buyers and sellers. Generation Z has taken its first steps into homeownership, bringing optimism and new ideas to the market.
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