NAR Report Highlights the Generational Trends in Homebuying

The National Association of REALTORS® (NAR) recently released its annual report on Home Buyers and Sellers Generational Trends for 2024. Here are four key takeaways and their implications for the real estate industry:

1. Millennials Retake the Lead: Millennials surpassed Baby Boomers as the largest group of homebuyers in 2023, accounting for 38% of the market. This shift is due to both younger Millennials entering homeownership and older Millennials seeking larger homes to accommodate their changing needs. Millennials also heavily relied on real estate agent referrals.
2. Baby Boomers Remain Active Sellers: Baby Boomers continued to be the largest demographic of home sellers, with older Boomers downsizing for retirement or lifestyle reasons. Their significant equity positions allow for strategic housing trades. Boomers also showed a preference for small towns or rural areas.
3. Increase in First-Time Buyers: There was a rise in first-time homebuyers across all generations, with younger Millennials leading the way. This trend is likely influenced by factors such as job stability and low interest rates.
4. Gen Z Emerges as a Unique Market: While making up the smallest demographic of homebuyers, Gen Z buyers exhibit unique characteristics. They are more likely to be single, especially single women, and are highly tech-savvy and environmentally conscious. Gen Z buyers often seek older homes and may require assistance with financing options due to student loan debt.

Catering to Generational Preferences

Industry professionals can effectively serve each generation by:

• Using data to create a positive first impression.
• Understanding and honoring customer preferences.
• Offering personalized service and support.

For example, Baby Boomers may appreciate assistance with paperwork and inspections, while Millennials may benefit from digital tools and financing options.

Preferred Settlement Services is a full-service title and closing company. With decades of combined experience, our team ensures a smooth closing process, no matter the challenges. Contact us at 941-376-9551 for more information or to schedule a closing.