New Home Market Update
Diane Begin
pr@zondahome.com
Millennials continue to shape housing demand by seeking out affordability, job opportunities, and space for growing families. Zonda’s annual proprietary Baby Chaser Index shows many baby boomer parents are following close behind.
“Demographic trends are a critical factor in understanding housing demand and fostering economic prosperity. No two cohorts are more influential today than millennials and baby boomers,” said Ali Wolf, chief economist for Zonda and NewHomeSource. “Millennials, the largest living generation, are in their prime working years and are currently active homebuyers. Baby boomers, their parents, possess the largest share of assets and wealth. Together, these two generations will significantly shape housing trends for years to come.”
- A quarter of boomers plan to retire near their children or grandchildren, creating a distinct pattern of intergenerational migration reshaping many market-level housing dynamics.
- Millennials remain the largest generation in the U.S., but their share of home purchases fell to 29% in 2024 (down from 38% in 2023) according to the National Association of Realtors.
- Boomers, by contrast, made up 42% of home purchases last year, often leveraging home equity and cash in today’s high-rate environment.
This year’s Baby Chaser Index followed last year’s updated methodology and continued to track the overlapping migration patterns of the two generations. However, latest results revealed a noticeable reshuffling among the top-ranked markets.
Among the top-ranked markets:
- Orlando dethroned Austin, despite the Sunshine State’s ongoing economic and housing headwinds. Long known for its retirement appeal, Orlando’s rise was driven by accelerated millennial growth. The annual growth rate of millennials in the market nearly tripled YOY.
- Texas remains dominant. Almost half of this year’s top 10 were in the Lone Star State. Austin, Dallas, and Houston secured top 5 positions, while San Antonio returned to the rankings at No. 10. McAllen was the only other Texan market to make the index, at No. 40.
- San Antonio replaced Oklahoma City. Both its millennial and boomer populations saw accelerated growth. Oklahoma City fell to 20th.
- Raleigh cracked the top three, fueled by a sharp uptick in its boomer’s migration rate, which nearly doubled year-over-year.
- Charleston slipped seven positions to No. 9 as millennial growth remained consistent but boomer migration slowed.
The path forward
The intergenerational migration story is far from over. If anything, it’s becoming more layered, more localized, and increasingly essential to understanding the trajectory of U.S. housing, especially as Gen Z starts to shape the next wave of demand.
Zonda will continue to monitor these evolving dynamics through proprietary tools like the Baby Chaser Index, helping you stay informed and ahead of where demand is heading and why.
Read the full article, including data tables and commentary, as published by BUILDER.