This Homebuyer.com study reports on home buyer data from more than 11 million mortgage applications last year, revealing the behaviors and choices of U.S. home buyers by generation.

It's Part Three of our comprehensive housing study, which also includes in-depth mortgage statistics and HMDA statistics studies, sorted by age groups.

Understanding Generational Home Buying

This Generational Home Buyer study tracks home buyer statistics by age group:

1. Gen Z Home Buyers (Ages 18-24)
2. Younger Millennial Home Buyers (Ages 25-34)
3. Older Millennial Home Buyers (Ages 35-44)
4. Generation X Home Buyers (Ages 45-54)
5. Younger Baby Boomer Home Buyers (Ages 55-64)
6. Older Baby Boomer Home Buyers (Ages 65-74)

Data points include starting principal balance, purchase price, down payment amount, mortgage loan type, race, geographic preferences, and relative household income. Current mortgage rates were disregarded.

Our methodology is shown at the bottom of this study.

Gen Z Home Buyer Statistics (Ages 18-24)

Gen Z home buyers are driven by the wealth-generation opportunities of owning a home and the chance to invest in their future. To them, owning a home is more than just avoiding rent or moving out of your parent's house; it's about establishing roots and achieving a sense of accomplishment.

Gen Z home buyers overwhelmingly use low-down payment mortgages.

Income and Debt Profile

• Average household income: $82,549
• Most common debt-to-income ratio: 40-45%
• 72.60% of Gen Z home buyers earned less than their area's median household income

Loan Characteristics

• Average mortgage loan size: $234,844
• Average purchase price: $261,015
• Median loan-to-value: 94.29%
• Most common down payment: 3-5% of purchase price
• 99.72% used mortgages within local mortgage loan limits

Mortgage Type Preferences

• 62.47% used conventional mortgages
• 22.62% used FHA mortgages
• 9.47% used VA mortgages
• 5.43% used USDA mortgages
• 94.24% chose 30-year loan terms

Demographics

• 86.79% identified as White
• 4.83% identified as Black or African American
• 4.28% identified as Asian
• 4.09% identified as American Indian/Alaska Native, Native Hawaiian/Pacific Islander, or Other

Geographic Preferences

• 42.31% of home sales in Ligonier, Indiana were to Gen Z buyers
• 121 Gen Z buyers purchased in ZIP Code 78002 (Atascosa, Texas), the highest of any U.S. ZIP code

Younger Millennial Home Buyer Statistics (Ages 25-34)

Younger Millennials have moved past their careers' initial stages and seek longer-term stability for themselves, their pets, and their families. For them, a home represents life progression and achievement of major milestones.

Many seek out first-time home buyer grants to accelerate their transition from renting to owning.

Income and Debt Profile

• Average household income: $118,279
• Most common debt-to-income ratio: 40-45%
• 46.50% earned less than their area's median household income

Loan Characteristics

• Average mortgage loan size: $355,931
• Average purchase price: $415,833
• Median loan-to-value: 93.10%
• Most common down payment: 3-5% of purchase price
• 96.16% used mortgages within local mortgage loan limits

Mortgage Type Preferences

• 71.33% used conventional mortgages
• 17.23% used FHA mortgages
• 9.63% used VA mortgages
• 1.81% used USDA mortgages
• 95.37% chose 30-year mortgage terms

Demographics

• 78.72% identified as White
• 7.16% identified as Black or African American
• 9.33% identified as Asian
• 4.80% identified as American Indian/Alaska Native, Native Hawaiian/Pacific Islander, or Other

Geographic Preferences

• 67.48% of home sales in Chicago's West Town/Noble Square neighborhood were to Younger Millennials
• 498 Younger Millennial buyers purchased in ZIP Code 78002 (Atascosa, Texas), the highest of any U.S. ZIP code

Older Millennial Home Buyer Statistics (Ages 35-44)

Older Millennials have established their careers and are building foundations for their future. Their considerations extend beyond the individual to growing families, including schools and community amenities.

Owning any of the 26 styles of American homes represents an empowering milestone, solidifying their status and ensuring a legacy for the next generation.

Income and Debt Profile

• Average household income: $150,830
• Most common debt-to-income ratio: 40-45%
• 35.20% earned less than their area's median household income

Loan Characteristics

• Average mortgage loan size: $437,904
• Average purchase price: $539,731
• Median loan-to-value: 92.00%
• Most common down payment: 5-10% of purchase price
• 90.74% used mortgages within local mortgage loan limits

Mortgage Type Preferences

• 72.50% used conventional mortgages
• 16.74% used FHA mortgages
• 9.72% used VA mortgages
• 1.03% used USDA mortgages
• 94.18% chose 30-year mortgage terms

Demographics

• 73.01% identified as White
• 10.41% identified as Black or African American
• 11.81% identified as Asian
• 4.76% identified as American Indian/Alaska Native, Native Hawaiian/Pacific Islander, or Other

Geographic Preferences

• 64.47% of home sales in Issaquah, Washington's 98029 ZIP code were to Older Millennials
• 452 Older Millennial buyers purchased in ZIP Code 78245 (San Antonio, Texas), the highest of any U.S. ZIP code

Generation X Home Buyer Statistics (Ages 45-54)

Generation X buyers have reached career milestones and contemplate their transition into later life stages. They buy versatile homes with extra rooms for multigenerational living, caring for college-aged children and aging parents.

They're ready to implement first-time home buyer tips from friends and family, viewing homeownership as a forward-thinking strategy and legacy builder.

Income and Debt Profile

• Average household income: $153,445
• Most common debt-to-income ratio: 40-45%
• 36.15% earned less than their area's median household income

Loan Characteristics

• Average mortgage loan size: $407,678
• Average purchase price: $522,306
• Median loan-to-value: 85.19%
• Most common down payment: 10-15% of purchase price
• 91.97% used mortgages within local mortgage loan limits

Mortgage Type Preferences

• 71.60% used conventional mortgages
• 17.67% used FHA mortgages
• 9.80% used VA mortgages
• 0.92% used USDA mortgages
• 91.66% chose 30-year mortgage terms

Demographics

• 75.28% identified as White
• 12.30% identified as Black or African American
• 8.52% identified as Asian
• 3.89% identified as American Indian/Alaska Native, Native Hawaiian/Pacific Islander, or Other

Geographic Preferences

• 39.02% of home sales in Double Oak, Texas' 75022 ZIP code were to Gen X buyers
• 249 Gen X buyers purchased in ZIP Code 78245 (San Antonio, Texas), the highest of any U.S. ZIP code

Younger Baby Boomer Home Buyer Statistics (Ages 55-64)

Younger Baby Boomers balance impending retirement with supporting adult children or grandchildren. They seek homes with simpler floor plans, proximity to healthcare, and community activities.

This age group shows migration to warmer climates, particularly Florida, differing from other groups that tend toward Texas, Colorado, and western states.

Income and Debt Profile

• Average household income: $138,840
• Most common debt-to-income ratio: 20-30%
• 42.15% earned less than their area's median household income

Loan Characteristics

• Average mortgage loan size: $350,024
• Average purchase price: $480,987
• Median loan-to-value: 85.19%
• Most common down payment: 15-20% of purchase price
• 94.29% used mortgages within local mortgage loan limits

Mortgage Type Preferences

• 76.74% used conventional mortgages
• 12.33% used FHA mortgages
• 10.19% used VA mortgages
• 0.74% used USDA mortgages
• 88.33% chose 30-year mortgage terms

Demographics

• 80.64% identified as White
• 11.48% identified as Black or African American
• 4.78% identified as Asian
• 3.10% identified as American Indian/Alaska Native, Native Hawaiian/Pacific Islander, or Other

Geographic Preferences

• 49.30% of home sales in Boynton Beach, Florida were to Younger Baby Boomers
• 371 Younger Baby Boomer buyers purchased in ZIP Code 34785 (Wildwood, Florida), the highest of any U.S. city

Older Baby Boomer Home Buyer Statistics (Ages 65-74)

Older Baby Boomers have weathered multiple transitions with retirement in full swing or on the immediate horizon. They seek simpler, maintenance-free living closer to amenities and recreational activities.

Many are open to relocating to active senior communities and value comfort, convenience, and community above all else.

Income and Debt Profile

• Average household income: $120,974
• Most common debt-to-income ratio: 45-50%
• 16.32% earned less than their area's median household income

Loan Characteristics

• Average mortgage loan size: $347,167
• Average purchase price: $419,316
• Median loan-to-value: 80.28%
• Most common down payment: 15-20% of purchase price
• 95.85% used mortgages within local mortgage loan limits

Mortgage Type Preferences

• 56.11% used conventional mortgages
• 25.37% used FHA mortgages
• 15.90% used VA mortgages
• 2.62% used USDA mortgages
• 94.22% chose 30-year mortgage terms

Demographics

• 84.53% identified as White
• 9.14% identified as Black or African American
• 3.56% identified as Asian
• 2.78% identified as American Indian/Alaska Native, Native Hawaiian/Pacific Islander, or Other

Geographic Preferences

• 70.18% of home sales in Castle Hill, California were to Older Baby Boomers
• 348 Older Baby Boomer buyers purchased in ZIP Code 34785 (Wildwood, Florida), the highest of any U.S. city

Research Methodology

The data for this generational home buyer study was gathered from the FFEIC Snapshot National Loan Level Dataset for 2022, except where noted. The FFEIC files contain national HMDA datasets from all HMDA reporters, which include mortgage lenders, retail banks, and credit unions.

Data Processing

Application data is modified to protect applicant and borrower privacy. For mortgage-related data points, the study excludes open-ended mortgages in first-lien positions, subordinate liens in junior positions, and reverse mortgages, except where noted.

We sourced the home buyer statistics using complex database queries. We removed outlier data, mostly related to home buyers who withdrew their mortgage applications before closing and mortgage applications that fell beyond typical and expected ranges.

Data Quality Assurance

Less than one-half of one percent of HMDA data was excluded for reasonability reasons. Despite the thorough nature of HMDA data, our study required additional calculations to derive more complex home buyer statistics. Relative percentages and comparison figures required advanced mathematical calculations, which we queried and compiled.

To ensure the accuracy of our study, we relied on the robustness of the HMDA data and the precision of our queries. The stringent data extraction, filtering, and analysis process improved our results' reliability.

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