Millennials have surged ahead to become the largest group of home buyers, marking a significant shift in the housing market’s demographic landscape, according to the latest report from the National Association of Realtors^®.

The 2024 Home Buyers and Sellers Generational Trends report, which examines the similarities and differences among recent home buyers and sellers across generations¹, found that the combined share of millennials, both younger (ages 25 to 33) and older (ages 34 to 43), now make up a combined 38% of the home buying market, a substantial increase from 28% last year. Baby boomers, comprising both younger boomers (ages 59 to 68) and older boomers (ages 69 to 77), saw their share decrease from 39% to 31%, relinquishing their position as last year’s largest demographic of home buyers.

“The generational tug-of-war between millennials and baby boomers continued this year, with millennials rebounding to capture the largest share of home buyers,” said Dr. Jessica Lautz, NAR deputy chief economist and vice president of research. “This notable rise is attributed to both younger millennials stepping into homeownership for the first time and older millennials transitioning to larger homes that suit their evolving needs.”

The report underscored a rise in first-time buyers across many generations, with 32% of all buyers purchasing for the first time, an increase from 26% last year. Leading the charge were younger millennials, whose proportion of first-time buyers increased from 70% to 75% over the past year. Forty-four percent of older millennials and 24% of Generation X (ages 44-58) were first-time buyers.

In parallel, the emergence of Generation Z (ages 18-24) in the housing market paints a picture of diversity and independence. While this cohort only accounted for 3% of all buyers, an impressive 31% of Gen Z purchasers were single females – a proportion significantly higher than that observed in any other generation.

“Gen Z buyers are entering the housing market, and their demographics are emerging distinctly from other age groups,” Lautz said. “More than half are single buyers, outpacing all age groups of single men and single women, and they are also most likely to identify as LGBTQ+.”

Despite these shifts in buyer trends, baby boomers remained the largest home-seller generation, accounting for 45% of all sellers in 2023. The tenure of homeownership before making a sale varied significantly by generation. While the median among all buyers was a 10-year stay before selling, older millennials typically sold their homes after just six years, contrasting sharply with Gen X, baby boomers and the Silent Generation (ages 78-98), who typically stayed in their homes for 15 years.

“Baby boomers continue to dominate the home-selling market as they make pivotal decisions regarding their retirement living situations, whether it’s right-sizing or moving closer to loved ones,” Lautz said. “Benefiting from longer periods of homeownership compared to other generations, boomers approach these transactions with substantial equity, enabling strategic housing trades.”

In the face of changing market dynamics, the enduring appeal of homeownership remains strong. This year’s report revealed that 82% of all buyers consider a home purchase a good financial investment, with this sentiment especially pronounced among younger millennials, 86% of whom echo this positive outlook.

Across all generations, nine out of ten buyers indicated they would either definitely (75%) or probably (15%) enlist their real estate agent’s services again or recommend them to others. Similarly, among sellers, 87% expressed they were likely to reuse or refer their agent.

“The universal value of owning a home transcends every generation, serving as a cornerstone for both personal prosperity and community development,” said NAR President Kevin Sears, broker-partner of Sears Real Estate in Springfield, Massachusetts. “In navigating the complexities of the market, buyers and sellers continue to rely on agents who are Realtors^® for their expertise and guidance, underscoring the invaluable service they provide in bringing dreams of homeownership to life.”

Methodology

NAR mailed a 129-question survey in July 2023 using a random sample weighted to be representative of sales on a geographic basis to 189,750 recent home buyers. Buyers had to have purchased a primary residence home between July 2022 and June 2023. The survey received 6,817 responses from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 3.6%.

All information in this report is characteristic of the 12-month period ending June 2023, with the exception of income data, which are reported for 2022. In some sections, comparisons are provided for results obtained in previous surveys. Not all results are directly comparable due to changes in questionnaire design and sample size.

There is so much talk about generative AI today, it has become somewhat of a hot-button issue among working professionals and business leaders.

We are witnessing firsthand the power of generative AI with applications like ChatGPT, Gemini, and other content-creating software. On Meta, Instagram, and other social media sites, there are works of digital art being created by generative AI applications like Midjourney, Canva and DALL·E 3 to name a few.

But despite the fact that many are already implementing it while others are kept up at night about it, even I have to beg the question: So what?

Why does the Hard Trend future certainty of generative AI matter so much to society, both professionally and personally? Is there real danger I should be aware of regarding this disruptive digital application? How can it make my life better at work or at home?

Again, generative AI is here to stay. So what?

Generative AI Is Sculpting Our Professional Landscape

What we saw happen in 2023 and years prior was an exponential growth of generative AI by way of content creation applications. Last year, the average person went from a very rough understanding of “artificial intelligence” itself to worrying that AI will replace them in their job, put them out of business, or help their child cheat in school.

But as I mentioned above, AI itself and more specifically generative AI is not going to slow down — it is only going to accelerate! And as a result, we are going to see massive change in all industries and career fields.

Let’s take the teaching and education sector and generative AI’s impact on it. If you survey any number of teachers or administrators right now, you may find that for the most part, they fear generative AI. This fear pertains to cheating on assignments and tests, and their belief that students will be worse off as a result.

Yet because our first reaction is fear, we tend to hold ourselves back from seeing the benefits and, thus, prevent an Anticipatory Mindset from replacing an agile one. If we accept that generative AI is a Hard Trend future certainty, we will be able to see it as nothing more threatening than a calculator was to longhand math!

Generative AI Plus Niche Data Equal Personalized Education

Generative AI should not be banned from the classroom. Without question, it should be leveraged for good!

One of the most prolific developments in generative AI and the education sector is the ability for a more personalized education experience for every student. How is this possible? Well, think of all the data any given individual puts into the digital world. 

There have been breakthroughs in specialized generative algorithms that are being powered by big data. If you consider all of the personalized data of every individual, think of how that can be leveraged for educational purposes. These can be advancements including AI applications that help students comprehend the class textbook to something that can rephrase questions on a quiz so that a student with a learning disability succeeds in their own way.

What this results in is teachers being able to focus on personalizing the experience in the classroom even further, focusing instead on the higher cognitive domain of each student. I relate this concept back to the invention of the calculator and in more recent years, the computer and now tablet. The calculator helped us do basic addition faster and in turn, teachers focused on making sure students could visualize what it was doing. The computer let us write papers with ease so teachers could focus more on their students learning the importance of the material they are writing about.

Now, generative AI will help with personalizing educational experiences to each individual learner. This is the perfect opportunity for teachers to then be able to personalize their interaction with each student much easier, making every learner feel welcome and find success in learning.

Anticipation and the New Frontier of Generative AI

Staying on the topic of education, even though generative AI is here and you may say to yourself, “So what? What is the big deal?” — it is imperative that you anticipate what is to come with it.

So many find themselves having to adapt, which is what breeds the fear of change. We feel out of control when change happens to us. But the concept of change is the only constant in every industry; the question is whether you will take charge and be the force of transformation on your own.

Adaptation is not what we should be doing. We should be taking this moment to anticipate what is coming our way regarding developments in generative AI. How do we anticipate the future of generative AI right now? Look at what is already there as a Hard Trend future certainty and think, “If this type of generative AI is already capable of doing certain tasks, it no doubt will be able to do more.”

Likewise, especially in education, think critically! Think exponentially. What are some basic tasks that are filling the days in your classroom and exhausting you? What would make reaching students easier? What would make students’ lives easier?

Generative AI is and will continue to simplify our lives, but that does not mean we have to grow complacent. Mastering generative AI allows you to better lead a business, teach a classroom, and be human in it all.

Eager to master generative AI and stay ahead of the curve? Get your hands on Daniel Burrus’ AI Tools and Recommendations Report. Visit www.aiStrategyReport.com now and step into the future prepared and informed. Download today and transform anticipation into action!