Real Estate Trends: Who's Buying Homes? Insights from the National Association of Realtors®

Understanding who is buying homes can provide valuable insight for buyers, sellers, real estate professionals, and mortgage lenders alike. Each year, the National Association of Realtors® (NAR) releases its Generational Trends Report, offering a detailed look at the demographics, motivations, and financial characteristics of today's homebuyers.

The report spans more than 130 pages, so we've highlighted some of the most important findings to help Southern Arizona homebuyers stay informed.

Baby Boomers Overtake Millennials as the Largest Group of Homebuyers

For the first time since 2014, Millennials are no longer the largest segment of homebuyers. According to the 2023 NAR Generational Trends Report, Baby Boomers accounted for 39% of all home purchases.

That figure includes:

• 23% Younger Boomers (ages 58–67)
• 16% Older Boomers (ages 68–76)

Many Baby Boomers are repeat buyers who have built significant home equity over the years, allowing them to move into retirement homes, downsize, or relocate closer to family and friends.

NAR Deputy Chief Economist Dr. Jessica Lautz noted that many Boomers are healthier, more active, and making housing decisions later in life than previous generations. In fact, approximately 40% of Boomers reported that it was simply the right time to purchase a home.

First-Time Homebuyer Numbers Continue to Decline

With Baby Boomers making up a larger share of homebuyers, it's not surprising that first-time buyer activity has declined.

The report found:

• Only 26% of all buyers were first-time homebuyers.
• This represents a decline from 34% the previous year.
• It is the lowest first-time buyer share recorded since NAR began tracking the data.

When broken down by generation:

• 58% of Millennials were purchasing their first home.
• 21% of Gen X buyers were first-time homeowners.
• Only 8% of Baby Boomers were first-time buyers.

For prospective buyers in Tucson and Southern Arizona, these numbers highlight the challenges many first-time buyers face, including affordability concerns, inventory shortages, and higher mortgage rates. However, programs such as Down Payment Assistance may help qualified buyers overcome some of these barriers.

Income and Education Trends Among Homebuyers

Gen X buyers reported the highest household incomes among all generations, followed closely by Older Millennials.

Median household income by generation included:

• Gen X: $114,300
• Older Millennials: $102,900
• Gen Z: $50,400

Although Gen Z represented only 4% of homebuyers, that share doubled from the previous year's 2%, demonstrating growing participation from younger buyers entering the housing market.

Education levels were also noteworthy:

• 80% of Younger Millennials held an associate degree or higher.
• 48% had earned either an associate or bachelor's degree.
• Older Millennials closely followed with 41% holding similar educational credentials.

As more educated and financially prepared buyers enter the market, homeownership continues to play a critical role in long-term wealth building.

If you're preparing to buy your first home, reviewing The Polder Group's Loan Process and Loan Checklist can help you better understand what to expect.

Why Are People Buying Homes?

One of the most interesting sections of the NAR report focuses on buyer motivations.

The top reasons buyers purchased a home included:

1. The Desire to Own a Home

Twenty-two percent of all buyers cited the desire to own a home of their own as their primary motivation.

This reason was especially strong among Younger Millennials, with 47% identifying homeownership as their top goal.

2. Being Closer to Family and Friends

Thirteen percent of all buyers cited proximity to family and friends as their primary reason for purchasing.

Among older generations, this motivation became even more significant:

• Younger Boomers: 21%
• Older Boomers: 20%
• Silent Generation: 33%

3. Retirement Planning

Retirement was another major driver among Baby Boomers, many of whom are relocating, downsizing, or moving to communities that better fit their lifestyle needs.

Homeownership Offers More Than Just a Place to Live

While the NAR report focuses on measurable data, many homeowners cite additional benefits of owning a home, including:

• Personalizing and decorating their space
• Having a yard for children and pets
• Building equity over time
• Establishing roots within a community
• Creating long-term financial stability

For many families in Tucson and Southern Arizona, homeownership remains one of the most important steps toward achieving personal and financial goals.

Thinking About Buying a Home in Southern Arizona?

Whether you're a first-time buyer, moving up to your next home, relocating for retirement, or exploring your financing options, having the right mortgage team can make all the difference.

The Polder Group at CrossCountry Mortgage helps homebuyers throughout Tucson and Southern Arizona navigate the mortgage process with confidence. From pre-approval to closing, our team is here to answer your questions and help you explore loan options that fit your goals and financial situation.

Ready to get started? Visit our Home Buying Resources page or contact The Polder Group today.

About the National Association of Realtors® Generational Trends Report

The National Association of Realtors® Generational Trends Report is produced annually by the NAR Research Group and analyzes homebuyer behavior across generations. The 2023 report reflects data collected from primary residence buyers who purchased homes between July 2021 and June 2022.

To view the complete report and additional housing market research, visit the National Association of Realtors® Research & Statistics website.

Frequently Asked Questions

Are Millennials still buying homes?

Yes. Millennials remain one of the largest groups of homebuyers and represent the majority of first-time homebuyers, even though Baby Boomers accounted for the largest share of total purchases in the 2023 report.

Why are Baby Boomers buying more homes now?

Many Baby Boomers have significant home equity from previous homeownership, allowing them to purchase retirement homes, relocate closer to family, or move into homes that better fit their current lifestyle.

Is homeownership still a good way to build wealth?

While real estate values can fluctuate, homeownership has historically been one way many households build equity and long-term net worth over time.

What mortgage programs are available for first-time buyers?

Options may include FHA loans, conventional loans, VA loans for eligible veterans, USDA loans in qualifying areas, and down payment assistance programs. Eligibility depends on qualifying factors and program guidelines.

This article is for educational purposes only and does not constitute financial or mortgage advice. Loan programs, rates, and guidelines may change at any time. All loans are subject to credit approval and underwriting. For guidance tailored to your situation, consult a licensed mortgage professional.