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The mortgage market’s moving — are you moving with it?
With rising rates, limited inventory, and shifting generational trends, the homeownership landscape is evolving quickly. Millennials and Gen Z are stepping into the market, while baby boomers and Gen X continue to play key roles—but in different ways. Add in shifting migration patterns, with buyers flocking to affordable, high-growth regions, and the opportunities are stacking up. But how do you capitalize on all of this and effectively serve such a diverse range of borrowers?
Whether you’re targeting first-time buyers or connecting with existing homeowners, staying on top of these trends will help you refine your lending strategies, build deeper relationships, and unlock new growth opportunities.
Let’s take a look at how each generation is shaping the housing market and what you can do to stay ahead.
The general population snapshot
Millennials (born 1981-1996), represent approximately 21.71% of the population, making them the largest generational group. When you add Gen Zers to the mix, these two influential groups account for over 42% of the U.S. population and are shaping everything from the housing market to workforce dynamics and consumer trends.
On the other side, the Greatest Generation (born before 1928), the Silent Generation (born 1928-1945), and Baby Boomers (born 1946-1964) together represent more than a quarter of the population. Though their share is smaller, many in this segment—especially boomers—still play a role in shaping home-buying trends. Many have owned their homes for a long time, with baby boomers accounting for more than half of mortgage-free homeowners. As they downsize, move to sunnier spots, or pass properties on to heirs, their decisions contribute to shifting inventory in the housing market. This transition out of homeownership creates new opportunities for younger buyers to enter the market.
Millennials & Gen Z: Shaping the future of home buying
Given their size, millennials remain a dominant force in the housing market, accounting than 38% of all homebuyers and just under a quarter of home sellers last year, according to the National Association of REALTORS® (NAR) Home Buyers and Sellers Generational Trends Report. Still, this generation continues to contend with affordability concerns tied to rising home prices and mortgage rates, delaying some from purchasing a home.
Gen Z is making a smaller dent in home-buying trends. According to the NAR report, Gen Z accounts for 3% of homebuyers and 2% of home sellers—percentages that are expected to rise as this cohort enters their late 20s and 30s.
Gen X & baby boomers: The market’s power players
Gen X is firmly maintaining its position, making up 24% of homebuyers and 23% of home sellers, according to NAR. Baby boomers, on the other hand, account for 31% of homebuyers and dominate the selling market, representing 45% of all sellers. This aligns with anecdotal evidence that many Boomers are tapping into home equity to downsize, relocate, or buy retirement homes with cash.
Where are homebuyers moving?
Migration trends indicate a noticeable movement away from costly coastal cities toward more affordable, fast-growing areas. NAR reports that the top five states with the highest inbound migration are Florida, Texas, North Carolina, Tennessee, and Arizona. These states appeal to buyers across generations, offering a mix of affordability, robust job markets, and lower tax burdens.
Boomers, however, are driven to more manageable properties, and locations closer to family. As a result, states like Florida, New Mexico, Montana, Oregon, Maine, West Virginia, Pennsylvania, Delaware, New Hampshire and Vermont continue to draw in this demographic. Meanwhile, millennials are attracted to states like Virginia, Massachusetts, Colorado, Georgia, Washington, and California.
Conversely, more expensive states like California, New York, and Illinois are experiencing population declines as homeowners seek better affordability elsewhere.
How can mortgage lenders stay ahead?
The data’s clear—each of these generations contributes to the current state of the housing market, creating fresh opportunities for lenders who are ready for it. When crafting a winning mortgage lending strategy, there’s a lot to consider. But staying ahead of market trends, understanding borrower behavior, and having the right technology to help your borrowers navigate their unique needs is essential.
So, what’s your next move?
Join us in Orlando, FL, for our highly anticipated annual event—MeridianLink® LIVE! We’ll expand on these trends and borrower behaviors and provide you with actionable insights you can put to work right away. Plus, you’ll get the chance to connect with fellow mortgage lenders in peer-to-peer sessions, sharing challenges, solutions, and best practices that actually work.
Check out the full MeridianLink LIVE! agenda to see all the exciting mortgage content we have in store and take the first step toward discovering how our mortgage solutions can equip you with the modern technology and expert support you need to stay ahead and grow alongside your borrowers.
