The real estate market often highlights the influence of baby boomers, Millennials, and Gen Z. However, Gen X, born between 1965 and 1982, is making a significant impact on the housing sector. Despite being the smallest age group by population, they represent 24% of recent homebuyers in the United States according to a report by the National Association of Realtors.
Jenna Stauffer from Sotheby’s International Realty noted that “buyers who purchased homes before the [COVID-19] pandemic have benefited from substantial appreciation in property values.” This appreciation has enabled many Gen X homeowners to upgrade their properties even amid current market challenges.
Financially, Gen X stands as the second-highest-earning generation with an average income of $126,900 in 2023. Their wealth accumulation allows them to own larger homes averaging 1,940 square feet. However, this generation also faces considerable debt burdens including student loans and mortgage balances.
A silver lining for many was securing low interest rates during past decades. Yet now with rates around 7%, these homeowners are hesitant to trade their low-rate mortgages for new ones at higher rates.
Gen X finds itself balancing support for both aging parents and adult children which influences their housing decisions. According to Pew Research Center’s survey in 2022, over half provide financial aid to family members complicating potential moves or upgrades.
The trend towards multigenerational living is growing among Gen X with approximately 60 million Americans residing in such households today—a fourfold increase over fifty years. Notably, 19% of Gen X homebuyers seek residences suitable for multiple generations as reported by NAR.
As retirement approaches some consider whether upgrading or downsizing makes sense given high equity levels in their homes. Angie Golembiewski from Baird and Warner suggests there isn’t a perfect time to buy but advises prioritizing family needs or cost reductions when considering moving decisions.
