Boomers are buying up homes, blocking millennials from housing market

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Millennials are desperate to buy a home — but cash-flush boomers are standing in their way

— the ability to use cash savings or the profits from a home sale benefited more senior buyers. During the NAR's latest survey period, 51% of older boomers, aged 68 to 76, paid with all cash, compared to just 6% of buyers 32 years and younger. That dynamic, Lautz told me, has played a significant role in the rise of older buyers.

Is this a lasting trend, or did boomers make their trade last year and now they're set in their retirement properties? Given the fact that many of these moves were made with the intent of settling down, it's hard to tell if boomers will maintain their dominance or if this is a blip from an unusually dysfunctional year. When I asked Lautz to weigh in on the comeback's sustainability, she hesitated to make a prediction.

A lot has changed in the housing market since the NAR's survey period. The competition for homes has slowed considerably, thanks largely tothat have risen from historically low averages of less than 3% during the pandemic to about 6.4% as of late March. Less competition is especially good for millennials, as the past few months have shown: More first-time buyers appeared to be winning out on homes, Lautz said.

 

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