In recent years, the real estate market has been dominated by millennials, who have been driving the demand for housing. However, a new trend is emerging – baby boomers are now overtaking millennials as the prime home-buying generation.
Baby boomers, born between 1946 and 1964, are currently aged between 57 and 75. As they approach retirement, many are downsizing from larger homes and moving into smaller, more manageable properties. At the same time, they are also investing in second homes or vacation properties, in preparation for their retirement years.
According to recent studies, baby boomers accounted for 43% of all homebuyers in 2020, up from 32% in 2015. In contrast, millennials accounted for 37% of all homebuyers in 2020, down from 42% in 2015.
One of the main reasons for this shift is the strong economy and rising home prices, which have made it more difficult for millennials to enter the housing market. Many millennials are burdened with student loan debt and have faced challenges in finding steady employment, which has made it harder for them to save up for a down payment.
On the other hand, baby boomers have benefited from years of economic growth and have built up significant wealth, which they are now using to invest in real estate. Additionally, many baby boomers are looking for ways to generate passive income, and rental properties provide an attractive option.
Overall, the shift towards baby boomers as the prime home-buying generation is likely to continue in the coming years. However, this does not mean that the housing market is no longer accessible to millennials. With the right financial planning and investment strategies, millennials can still find ways to enter the market and build wealth through real estate. Ready to buy in the Nashville market? Contact us at The Lira Group (615) 440-6327 firstname.lastname@example.org