Who is Driving the Housing Market - Millennials and Boomers

Millennials and Boomers – Both seek walkability and amenities such as shopping, dining, and entertainment

St. Bourke, a leading asset management and property development company, examines the driving forces behind the current housing market. With the company’s expertise in developing lots for single-family home builders and designing dynamic communities for sale and rent, St. Bourke has a unique understanding of the market and its drivers.  The two largest generations in U.S. history are driving the housing market — the Millennials and Baby Boomers. Millennials are driving the demand for rental and starter homes as they form families and establish themselves in their careers, while Baby Boomers are driving demand for various housing types as they age into retirement and look to downsize and/or relocate.

“Millennials are starting families and looking for attainable housing options, while Baby Boomers are downsizing and seeking homes that cater to their retirement lifestyles,” said Ben Simpson, President of St. Bourke. “As these two groups grow and evolve, they will continue to shape the housing market and drive demand for different types of homes.”

There is increasing demand for sustainable, energy-efficient homes, which are becoming more popular among Millennials and Baby Boomers alike. As both groups become more conscious of their impact on the environment (and their wallets), they seek homes that align with their values and beliefs.

“At St. Bourke, we strive to create thoughtful, sustainable communities and meet the needs of residents through all stages of their lives,” said Simpson. “As the housing market evolves, we continue to focus on developing communities that meet the changing needs and preferences of both Millennials and Baby Boomers.”

Who is driving the housing market – Millennials and Baby Boomers

Millennials, known as Generation Y, were born between 1981 and 1996 and have increasingly impacted the national housing market; according to the National Association of Realtors, Millennials represented 43% of homebuyers in 2022. Over the past few years, more Millennials have become first-time homebuyers, with older millennials making up the largest generation of homebuyers at 25%, with a median age of 36.

This increase in Millennial homebuyers is attributed to several factors, including a stronger job market, increased access to credit, and a desire to build wealth and secure their financial future through homeownership. The demand for affordable, energy-efficient, and technologically advanced homes continues to grow among Millennial homebuyers.

With 900,000 millennials between 27- and 36 years old living in Atlanta, the metro area will benefit from rebounding demand over the next 12-18 months as home prices and interest rates stabilize further, and pent-up demand begins to break loose.

Baby Boomers, born between 1946 and 1964, make up a significant portion of the home buying market, accounting for an estimated 30% of all homebuyers in 2022. Baby Boomers are at a life stage where they may be looking to downsize or purchase a second home as they think ahead to retirement. They may also be looking for homes that better suit their changing lifestyle needs, whether located closer to family and friends, homes that require less ongoing upkeep and maintenance, or homes with improved accessibility features. As the Baby Boomer generation ages into retirement, their impact on the housing market will likely only increase.

The generation tends to have a high level of financial stability and a substantial amount of equity built up in their current homes, which gives them more flexibility in the home buying process as they are less sensitive to price and interest rate fluctuations. Many Baby Boomers are also looking for homes with the latest technology and energy-efficient features as they want to reduce their carbon footprint and save money on energy costs.

According to MarketNsight Principal and Chief Analyst John Hunt, the similarities between the Baby Boomers and Millennials are often surprising, so much so that millennials are sometimes referred to as echo boomers.

Both generations place a high value on homeownership to secure their financial future and build wealth. They both want to find a home that meets their needs and fits within their budget, but they are willing to make sacrifices to achieve this goal. Energy-efficient, environmentally friendly homes equipped with the latest technology are essential. Home designs need to allow for flexibility and adaptability, as they are aware that their needs and preferences may change over time. Finally, both Millennials and Boomers are attracted to safe and convenient neighborhoods close to amenities like shopping, dining, and entertainment options.

Overall, while there are some differences in the priorities and preferences of Baby Boomers and Millennials when it comes to home buying, they share a common goal of finding a home that will meet their needs and provide them with a secure and comfortable place to live for years to come.


St. Bourke develops lots for single-family home builders, building for sale and rent communities.

St. Bourke is an asset management and property development company primarily focused on residential communities and commercial assets. Offering a full suite of placemaking services ranging from acquisition through detailed design and development to ongoing management, St. Bourke has helped a variety of both private and institutional clients achieve their project goals. Founded in 2015, St. Bourke creates thriving communities and drives significant value for its clients, partners and community stakeholders. Active in 20 U.S. markets with 90 active residential projects, St. Bourke manages more than 12,000 acres and 25,000 lots. As Placemakers, St. Bourke makes places from the ground up. For more information, call 678-853-2530 or visit www.St.Bourke.com.

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