Baby boomers are dominating the housing market, both in terms of buying and selling homes, according to a new report.
Boomers are once again the biggest generation on both side of the real estate equation, surpassing millennials. The boomers’ share of selling rose to 52% in 2022 from 42% in 2021, according to an annual report by the National Association of Realtors.
Baby boomers make up 39% of home buyers, up from 29% last year.
Younger boomers dominated selling, comprising 30% of home sellers. The median age for this group was 63, and median income of $89,500.
Older boomers formed the second-largest share of sellers at 22%, and the median age for this group was 71.
“Younger boomers dominated selling, comprising 30% of home sellers. The median age for this group was 63.”
Homeowners across generations said the most common reason to sell was to be closer to friends and family. Older demographics said they wanted to sell due to retirement; younger generations said they wanted a bigger home or needed to relocate for work.
Remote work has also enabled many people to move farther away from big, expensive city centers.
In Akron, Ohio, for instance, there was an influx of people choosing to live in the state during the pandemic, lured in by more affordable housing, said Ali Whitley, president-elect of Ohio Realtors. The average sales price of a home in Ohio in February was $245,000, up 4% on February 2022, according to the Ohio Realtors association. In 2019, however, the average house price was $193,663, representing an increase of more than 25%.
The NAR also noted that people were moving much farther than before. Across generations, homebuyers in 2021 moved a staggering median of 50 miles when relocating. That’s the highest ever recorded, and up from 15 miles last year.
“Homebuyers in 2021 moved a median of 50 miles when relocating. That’s the highest ever recorded, up from 15 miles in 2022.”
Younger generations moved shorter distances, typically moving 15 miles away, the NAR noted, versus younger boomers moving away the furthest, at a median of 90 miles.
But in a twist, it’s not boomers, but members of Generation Z, who plan to stay in their homes for the longest time before selling.
“Among all generations, sellers typically remained in their home for 10 years before selling, up from nine years last year,” the NAR report said. “On average, younger millennials stayed in their homes for 4 years, while older boomers sold their homes after 16 years,” it added.
All generations expected to live in their home for 15 years, up from 12 years in 2021. Generation Z, on the other hand, expected to stay in their newly purchased home for 19 years.