Generational Blueprint: How Age Shapes the Real Estate Market

You may not want to admit it, but the Progressive Insurance commercials hit close to home: the homebuying process can reveal just how much we’ve become our parents. That said, each generation is marked by its own habits, preferences, and priorities when it comes to buying or selling a home. Here in Chatham County and beyond, buyers and sellers alike can benefit from learning how different generations approach real estate.

According to the National Association of REALTORS® (NAR) 2025 Home Buyers and Sellers Generational Trends Report, millennials make up the largest share of homebuyers, with Generation Z (Gen Z) steadily increasing its presence in the market. At the same time, Generation X (Gen X) and Baby Boomers play major roles as move-up buyers, sellers, and cash purchasers. This shift in demographics is influencing everything from home search preferences and financing strategies to marketing trends and housing demand.

Our team at Julie Roland Realty is equipped to help you make informed real estate decisions, no matter how far you have to scroll to reach your birth year online.

Housing demand numbers ultimately come down to population size. According to Radian’s analysis of U.S. Census data, millennials represent 21.8% of the U.S. population, while Gen Z makes up approximately 20.8%. Combined, these two generations account for more than 42% of Americans and represent a growing share of homebuying activity.

Today:

• Millennials represent 29% of all homebuyers and 19% of sellers.
• Gen Z represents 3% of buyers and 2% of sellers.
• Nearly half of all mortgage application inquiries in major metropolitan areas come from millennials.
• The median age of a first-time homebuyer reached an all-time high of 40 years old in 2025.

Source: National Association of REALTORS® Generational Trends Report (2025); Radian Insights (2025).

In today’s housing market, millennials, born between 1981 and 1996, hold the largest share of buyers. Many are moving beyond starter homes and entering their prime homeownership years. Unlike previous generations, however, millennials face a unique set of challenges: rising housing prices, higher rental costs, student loan debt, and an increased cost of living.

According to NAR, 39% of younger millennials reported student loan debt, with a median balance of $30,000. Additionally, 26% received down payment assistance through gifts or loans from family members or friends.

To achieve homeownership, many millennials are cutting back on discretionary spending to prioritize saving for a home.

Prospective millennial homebuyers are often focused on convenient commutes, access to family and friends, flexible home office space, walkable communities, and modern technology. In markets like Chapel Hill, Pittsboro, and Cary, neighborhoods offering convenience, quality schools, and lifestyle amenities continue to attract strong interest from millennial buyers.

Gen Z, born between 1997 and 2012, is establishing its presence in real estate. While housing affordability remains a hurdle, Gen Z buyers are actively pursuing homeownership. According to Radian, Gen Z accounted for 13% of all first-time home purchase applications in 2024. Buyers in this demographic are entering the market with good credit profiles, strong technology skills, extensive online research habits, and financial caution shaped by economic uncertainty.

Experian reports that the average Gen Z credit score was 681 in 2024, while millennials averaged 691.

Gen Z buyers place a strong emphasis on affordability, neighborhood quality, safety, access to amenities, and long-term value. This group is also willing to explore creative homeownership strategies, including multigenerational living arrangements, to reduce costs and build equity earlier.

Gen X, born between 1965 and 1980, represents one of the strongest segments of today’s real estate market. According to NAR, Gen X buyers were among the highest earners in the market, with a median household income of approximately $130,000. Because many Gen X homeowners have accumulated significant home equity, they often have greater flexibility when purchasing.

Many are looking for larger homes, additional bedrooms, dedicated office space, outdoor living areas, and communities with strong school systems.

Many sellers currently listing homes in the Triangle area are also Gen X homeowners looking to capitalize on years of appreciation and transition into their next stage of life.

One of the most surprising findings in recent housing reports is the continued strength of Baby Boomers in today’s market. Many are purchasing homes using proceeds from previous home sales rather than financing. Their cash-buying power gives them a competitive advantage, particularly in highly desirable neighborhoods.

Common priorities for Baby Boomer buyers include single-level living, low-maintenance properties, downsizing opportunities, age-friendly communities, and proximity to family members.

For sellers, understanding this buyer segment can help shape marketing strategies and property presentation.