There are now more homebuyers over age 70 than under 35. Unusual Whales had a lot more to say about it recently.
"Breaking into the housing market has become a steep uphill battle for younger generations in recent years." It points out elevated mortgage rates, soaring property values as the culprits. I would add low inventory in much of the country.
But it gets worse:
As of April, the income needed to purchase a median-priced home was roughly $114,000, according to Realtor.com — more than double the average U.S. salary. “The income needed to buy a home in the U.S. remains significantly higher than before the pandemic, underscoring the ongoing challenge of affordability even as market conditions gradually rebalance,” said Danielle Hale, Realtor.com’s chief economist.
A U.S. Treasury report found that rents and home prices have consistently outpaced incomes across most regions, squeezing affordability even further. Truly, the prospect of buying a first home feel increasingly out of reach for many millennials and members of Gen Z.
And this is where the statistics get truly shocking.
In 2024, there were more homebuyers over the age of 70 than under 35, according to data from the National Association of Realtors (NAR). Older baby boomers, born between 1946 and 1954, made up 22% of buyers, while younger millennials (born 1990–1998) accounted for just 14%. Gen Z buyers (born 1999–2011) represented an even smaller share at 5%. Deutsche Bank’s head of global macro research, Jim Reid, noted that nearly half — 46% — of all homes sold in 2024 went to buyers aged 60 and above.
Imagine you're a first-time homebuyer. Historically, younger adults dominated the entry-level homebuyer segment. Unusual Whales continues:
Back in 1991, the median first-time buyer was just 28 years old. By 2024, that figure had climbed to 38. The overall median age of homebuyers has also surged, hitting a record-high of 56 last year, up from 46 in 2021, according to NAR data cited by Apollo Academy Chief Economist Torsten Sløk. High borrowing costs and record home prices have driven much of this demographic shift.
Institutional investors gobble up much of the inventory that would otherwise be purchased by Gen Z and millienials. Some reports say this number could climb to 40% by 2030 without a shift of some kind.
Yet while the current outlook is discouraging, something will have to give. Prices might shift, interest rates will drop, and as I've pointed out in other posts, trillions of dollars will be passed from the Baby Boom generation. Surely, younger buyers will eventually claim a larger share of homeownership. But why wait? Why decide you're locked out of the American Dream.
I wrote The Pursuit of Home: A Real Estate Guide to Achieving The American Dream because there is another way. It's time to reclaim the cornerstone of the American Dream: homeownership.
Stop waiting for external factors to shift. Stop waiting for someone else to tell you that rates are low enough or inventory is high enough.
It's time to dream big. Create an inspiring vision that gets you off the couch and into some open houses. Hire a real estate agent who can nurture and enhance that vision, and help you bring it to life.
It doesn't start with complaining. It starts with BELIEF. Faith that your home is out there, waiting for you. Faith that you can make it happen. Faith that if you build a strong enough team around you, anything is possible.
It's not money alone that will help you find a home. It's your mindset.
That's why I wrote this book. I've seen people's dreams come true over two decades. I've seen too many miracles in real estate not to have much greater faith than my clients start with. It's time to share that deep belief in you on a broader scale.
It's time to change the conversation about real estate.
You can pre-order The Pursuit of Home by clicking this link.
Scott Harris is the founder of Magnetic, a boutique real estate brokerage firm in New York City with over $2 billion in real estate sales under its belt. He has helped thousands of people through the emotional process of homebuying, and turn them into happy homeowners.
