Homebuying habits are evolving along with new generations of buyers, particularly as differences in buying power, family situations, and design preferences shape demand in a competitive market. Gen X homebuyers purchased the most expensive homes with an average price tag of $320,000, while younger Millennials finalized home sales on the least expensive homes with a median price of $250,000, according to the National Association of Realtors’ 2022 Home Buyers and Sellers Generational Trends report.
The most common type of home purchased is a detached single-family home, making up 82% of total homes purchased by all generations, and while budget-conscious Millennial and Gen X buyers made purchases on older homes, baby boomers backed by home-equity wealth secured the newest homes.
Most recent buyers who purchased new homes were looking to avoid renovations and problems with plumbing or electricity, at 36%. Buyers who purchased previously owned homes most often considered them a better value, at 38%. Buyers aged 57 and older were more likely to purchase a new home for the ability to choose and customize design features.