Real Estate Trends 2023 – Homes Purchased

The National Association of Realtors® (NAR) has been tracking home buying and selling trends across generations since 2013. Their annual Generational Trends Report provides valuable insights into how different age groups approach homeownership, from first-time buyers to retirees.

While the full report exceeds 130 pages, we've highlighted some of the most interesting findings related to the characteristics of homes purchased and the motivations behind today's buying decisions.

One surprising takeaway? Regardless of age, many homebuyers are looking for remarkably similar features in a home.

Single-Family Homes Continue to Dominate

No matter the generation, the overwhelming majority of buyers purchased a detached single-family home.

From 88% of Older Millennials (ages 33–42) to 69% of Gen Z buyers (ages 18–23), detached single-family homes remained the preferred housing choice. While inventory availability certainly plays a role, the consistency across generations suggests that homebuyers continue to value privacy, outdoor space, and long-term flexibility.

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The Most Popular Home Configuration

Across nearly every generation, the median home purchased shared similar characteristics:

• Built in 1986
• Approximately 1,800 square feet
• Three bedrooms
• Two bathrooms

While there were some generational differences, the similarities were striking.

Older Baby Boomers (ages 68–76) purchased the newest homes, with a median construction year of 1996. Gen Z buyers purchased the oldest homes, with a median build year of 1976.

Gen X buyers (ages 43–57) purchased the largest homes, averaging 1,970 square feet, while Gen Z buyers purchased smaller homes averaging 1,480 square feet.

As buyers approach retirement age, downsizing often becomes a consideration. This trend was reflected among Younger Boomers (ages 58–67), whose median home size dropped back to approximately 1,800 square feet.

One constant remained: the classic three-bedroom, two-bathroom floor plan was the most common choice across all generations.

New Construction vs. Existing Homes: What Drives the Decision?

One of the largest differences among buyers involved choosing between new construction and previously owned homes.

Why Buyers Chose New Construction

The top reason buyers selected new construction was simple: they wanted to avoid major repairs and maintenance issues.

Across all generations, 41% of buyers cited concerns about renovations, plumbing issues, or electrical problems as a primary reason for purchasing a new home. Older Millennials felt this most strongly, with 54% identifying maintenance avoidance as a major factor.

Another significant reason was limited inventory of existing homes. In many markets—including Tucson and Southern Arizona—buyers have faced challenges finding homes that meet their needs due to constrained housing inventory.

Several factors have contributed to this trend, including:

• Pandemic-related shifts in housing preferences
• Historically low mortgage rates that encouraged homeowners to stay put
• Rising interest rates that reduced mobility
• Increased investor activity in residential real estate

Why Buyers Chose Existing Homes

For buyers who preferred previously owned homes, affordability and overall value led the way.

Thirty-one percent of all buyers cited price as a primary factor, with Gen Z buyers being the most price-sensitive group. More than half (51%) identified affordability as a key reason for choosing an existing home.

As buyers age, overall value and long-term fit often become more important than simply finding the lowest purchase price.

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Homebuyers Are Planning to Stay Longer

Despite common assumptions that younger buyers move frequently, many homebuyers expect to stay in their homes for the long term.

Among Younger Boomers, 61% anticipated remaining in their homes for 16 years or longer.

Surprisingly, 52% of Gen Z buyers shared the same expectation, indicating a strong commitment to long-term homeownership. The Silent Generation (ages 77–97) followed closely at 47%.

Younger Millennials were somewhat more mobile, though 38% still expected to remain in their homes for at least 16 years.

These findings reinforce an important point: for many Americans, buying a home remains a long-term investment rather than a short-term transaction.

Energy Efficiency Matters More Than Ever

Across nearly every generation, controlling heating and cooling costs ranked as the most important environmentally friendly home feature.

Windows, doors, and exterior siding ranked second, reflecting buyers' growing awareness of how building materials affect energy efficiency and utility costs.

Gen Z was the one exception, placing slightly greater emphasis on windows, doors, and siding than on heating and cooling systems. This may reflect a focus on long-term ownership and future maintenance savings.

For Arizona homeowners, energy-efficient features can be particularly valuable due to the region's hot summers and year-round cooling demands.

What This Means for Arizona Homebuyers

While each generation has unique priorities, today's buyers share more similarities than differences. Detached single-family homes, practical floor plans, energy efficiency, affordability, and long-term ownership remain top priorities regardless of age.

Whether you're buying your first home, upgrading to accommodate a growing family, downsizing for retirement, or exploring new construction opportunities in Tucson or Southern Arizona, understanding current market trends can help you make more informed decisions.

Frequently Asked Questions

Are single-family homes still the most popular type of home?

Yes. According to the NAR Generational Trends Report, detached single-family homes remain the preferred choice across every generation of homebuyers.

Why are many buyers choosing new construction homes?

Many buyers prefer new homes because they may require fewer immediate repairs and often include newer systems, appliances, and energy-efficient features.

Why do buyers choose existing homes instead?

Previously owned homes often offer greater affordability, established neighborhoods, and more competitive pricing compared to new construction.

Are younger buyers planning to move frequently?

Not necessarily. More than half of Gen Z buyers surveyed expected to remain in their homes for 16 years or longer.

What energy-efficient features are most important to homebuyers?

Heating and cooling efficiency, quality windows, doors, and exterior materials consistently rank among the most desired features.

Ready to Explore Your Home Financing Options?

Whether you're purchasing a single-family home, condo, new construction property, or investment in Southern Arizona, The Polder Group at CrossCountry Mortgage is here to help.

Our team can guide you through available loan programs, pre-approval options, down payment assistance opportunities, and financing strategies tailored to your goals.

Contact us today to discuss your homeownership plans and discover which mortgage solutions may be right for you.
https://www.thepoldergroup.com/contact-tucson-mortgage-team

About the NAR Generational Trends Report

The National Association of Realtors® 2023 Home Buyers and Sellers Generational Trends Report was prepared by the NAR Research Group using survey data from primary residence homebuyers who purchased homes between July 2021 and June 2022.

For additional information and the complete report, visit the National Association of Realtors® research center.

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.