Nearly 75% of Homebuyers and Sellers Are Millennial and Younger — What Trends Are Biggest Draws?

KatarzynaBialasiewicz / iStock.com

One of the key themes of the 2022 U.S. housing market is that a lot of people want to buy a new home and a lot want to sell, but it’s becoming increasingly difficult to do either because of record-high home prices, rising mortgage rates and increased competition.

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A new Realtor.com survey released on May 24 found that 72% of home sellers also plan to buy this year. That’s a challenge in the current environment. As Realtor.com noted, many home buyers are being priced out of the market, while sellers face rising competition from an influx of other sellers who weren’t in the market a year ago.

The survey of 3,212 adults, conducted in April by HarrisX, found that younger Americans are particularly active in the housing market. The largest demographic group of seller-buyers active in this year’s market are millennials (47%). Seller-buyers in the Gen Z cohort (25%) are the second largest group, followed by Gen X (15%) and baby boomers (12%).

“As seller-buyers, many stand to profit from record-high home prices, but are also challenged by the lack of affordable listings and rising cost pressures,” George Ratiu, senior economist and manager of economic research at Realtor.com, said in a press release.

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Another trend is that nearly half (45%) of 2022 seller-buyers plan to buy outside of their current towns, including 9% who anticipate moving to another state. The main reasons given were a lower cost of housing (25% of respondents), warmer climate (23%), greater access to outdoor activities (19%) and proximity to family and friends (19%). The majority of 2022 seller-buyers live in the South (37%) or West (33%).

Among the survey’s other key findings:

The study concluded that although seller-buyers face the same challenges as any other buyers, they could offer a reprieve from the current shortage of homes for sale.

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