First-time home buyers typically account for a large share of the homes sold in any given year. Historically, they’ve made up around 40 percent of annual home sales. For the past several years, though, the number of first-time buyers has run lower than its historical average. In fact, they now account for something closer to 30 percent of all sales. That means fewer young Americans are active in the housing market. It also explains a new analysis which found that – for the first time in nearly a decade – older home buyers have been more active in the market than younger buyers. The data shows 39 percent of home buyers between July 2021 and July 2022 were baby boomers. Millennials trailed behind at 28 percent of buyers, and Gen X followed at 24 percent. The reason for the generational switch is pretty simple: High home prices, low inventory, and rising mortgage rates have made it more challenging for first-time buyers, while baby boomers are more likely to have the financial resources necessary to navigate the current market. (source)
