Boston condo homebuyers profile
Boston Condos for Sale and Apartments for Rent
Boston condo homebuyers profile
“In a plot twist, baby boomers have overtaken millennials — the largest U.S. population — to become the top generation of homebuyers,” Jessica Lautz, NAR’s deputy chief economist and vice president of research, said in a press release.
Baby boomers also made up the highest share of sellers at 53%.
Buyer demographics
via NAR
Millennials fell to 29% of buyers, with older millennials (born between 1980 and 1989) accounting for 17% and younger millennials (born between 1990 and 1998) accounting for 12%. The share of Gen X homebuyers (born between 1965 and 1979) was 24%.
The Silent Generation, defined as those born between 1925 and 1945, only made up 4% of all buyers. Gen Z buyers, meanwhile, made up just 3% of homebuyers. NAR defined that generation as those born between 1999 and 2011.
Over 60% of all buyer households were married couples, followed by single females and single males. Gen Z represented the highest share of female homebuyers at 30%. Gen Z buyers were also more likely to be single than buyers in other age groups.
Young millennials were the generation of homebuyers most likely to identify as non-heterosexual, with 16% identifying as gay, lesbian, bisexual or other.
Elder millennials, meanwhile, were the most educated sect of homebuyers. Nearly a quarter had a master’s degree or law degree, while 10% had a Doctoral degree.
Nearly a quarter of buyers — 24% — were first-timers, down 8% year over year. First-time homebuying was most common among younger millennials, although older millennials were increasingly likely to be second- or third-time buyers.
Motivations
Among buyers aged 59 and younger, the desire to own one’s own home was the main factor behind a home purchase. That desire was the most common among young millennials, with 51% listing it as their primary reason. However, among boomers and the Silent Generation, purchases were more likely to be motivated by the desire to be closer to family or friends.
However, one thing was common among all buyers, regardless of age: 43% said their purchase happened simply because the timing was right. That proportion was lowest among older millennials and Gen X at 41%, and highest among young boomers at 47%.
Finances
via NAR
Overall, 90% of buyers aged 44 or younger financed their home. On the flip side, older buyers were more likely to forgo a mortgage.
“What’s striking,” Lautz said, “is that half of older boomers and two out of five younger boomers are purchasing homes entirely with cash, bypassing financing altogether.”
Gen X was the generation with the highest median household income at $130,000. Millennials followed close behind at $127,500.
Multigenerational homebuying was most common among Gen X, with 21% of buyers from the generation purchasing a home to live with aging family members or other relatives. Lautz referred to the demographic as the “sandwich generation,” saying, “While Gen X are purchasing at the highest household incomes, they may still feel the squeeze as they aim to find a home that serves everyone.”
Gen X was the generation most likely to finance 100% of their home’s purchase price.
Home characteristics
Young boomers were most likely to purchase a new home, with 15% of homebuyers in the demographic opting for new construction. They were followed by Gen X, older boomers and the Silent Generation at 14% each. All three generations favored new construction in an effort to avoid renovations or other unforeseen problems.
Gen Z buyers were most likely to purchase previously owned homes, with only 8% buying new and a median home age of 30 years (the oldest of any age group). Those young buyers said their main reasons for purchasing older homes were the price and overall value.
Nearly half of all buyers purchased homes in the suburbs at 45%. That proportion was highest among older boomers at 49% and lowest among younger boomers at 41%. Younger boomers were the most likely generation to buy in a small town at 26%, followed by the Silent Generation at 24%.
Older millennials and Gen X bought the biggest homes, with a median of 2,000 square feet for each age group. Older millennials were also most likely to buy homes sized 3,501 square feet or more.
Across generations, most buyers purchased three-bedroom, two-bathroom homes.
Buyer’s agents
via NAR
More than eight out of every 10 buyers worked with a real estate agent to facilitate their home purchase. Millennials were the most likely to enlist help from a professional at 90% of all buyers.
Meanwhile, 88% of buyers said they’d work with their agent again in the future or recommend them to others. That sentiment was most common among the Silent Generation (those aged 79 to 99).
Buyers in all age groups wanted an agent who would help them find the right home. The second-most common agent desire was help with negotiations, followed by paperwork assistance.
Young millennials were most likely to say their real estate agent helped them understand the process of buying a home.
Sellers
Baby boomers also emerged as the generation selling the most homes, making up 53% of all homesellers.
The average seller stayed in their home for a median of 10 years, with younger millennials selling after about five years and older boomers selling after 16.
Nine in ten sellers worked with a real estate agent, and most received 100% of the final list price.
However, a slightly higher proportion of younger millennials — 94% — worked with an agent to sell their home. Over a quarter of that group sold for 101% to 110% of their list price, while 13% sold for over 110%, suggesting that partnering with a seller’s agent can equate to higher profits.
via NAR
Updated: Boston Real Estate Blog 2025
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Boston condo homebuyers profile
Of those considering a move, more than 1 in 4 (27%) want to stay within their current area. The main driver behind this sentiment is a desire to reduce living expenses, which is true for 44% of respondents.
Rounding out the top five reasons behind a potential move are:
- “My current home is too small” (27%)
- “I’m looking for different features” (27%)
- “I’d rather live in a different part of town” (12%)
- “I don’t like the management of the property I’m renting” (11%)
“The economic crisis has adversely affected the finances of many Americans,” said Tendayi Kapfidze, LendingTree’s chief economist. “Even those who have kept their jobs and added to savings, via stimulus and spending less due to staying home, are likely worried about the stability of their financial position.”
For most Bostonians, the location of their condo is as important as ever. According to Demand Institute 75% stated that the location of where they live is more important than the home itself.
The top reasons for moving:
1. For a safer neighborhood.
2. Closer to family
3. Closer to work
4. New job.
Nationally, as the chart above shows the average age for a first time homebuyer is 31, for repeat buyer it’s 53.
The average income for first time buyer is $68,300 and for repeat buyer its $95,000.
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Updated: Boston Real Estate for Sale 2020
