Millennials, Baby Boomers and Real Estate
March 20, 2018 | Buying
March 20, 2018 | Buying
A lot of ink is spilled (or these days, you might say “a lot of gigabytes are disseminated”) on the impact of the Millennial generation on residential real estate.
Conventional wisdom has it that Millennials are living in their parents’ basements and are priced out of the market. On the other hand, news abounds that Millennials lead the way in home buying. About 36% of all home buyers in 2017 were Millennials, higher than any other generational group.
Less noticed, but equally impactful, are the Baby Boomers. They were 32% of all buyers in 2017 and made up 45% of all sellers.
Millennials and Boomers have more similarities than differences when it comes to buying and selling homes and many of them will surprise you. We’ll list a few in a moment but first let’s think about an issue that few notice when analyzing real estate from a generational perspective.
The issue? There is no agreed upon definition of when the various generations start and end. When you hear people talk about Gen X or the Greatest Generation, you can’t be sure which definition they’re using.
The one exception is Baby Boomers. It’s the only generation officially recognized by the Census Bureau, which it defines as people born between 1946 and 1964. Everyone accepts these dates for Boomers, although some further segment this group into Older Boomers (1946 thru 1954) and Younger Boomers (1955 thru 1964).
On the other hand, there is wide disagreement on dates for Millennials. You’ll see dates starting anywhere between 1977 and 1984. Ending dates can range from 1995 to 2004. You can read two different studies about Millennials but can’t be sure that each is talking about the same group of people. It might not be a kumquats to kumquats comparison.
The study we’re using for reporting on the home buying and selling habits of Millennials and Boomers defines Millennials as people born from 1980 through 1998. While the study breaks Boomers into the younger and older subgroups, we’ve combined the data and report on Boomers as a whole, meaning people born from 1946 thru 1964. Thus, both groups span a 19-year time frame.
With this definitional matter out of the way, how do these two generations compare when it comes to residential real estate?
Both Millennials and Baby Boomers are making significant contributions to the current health of the residential real estate market and they share more in common than is normally supposed.
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