The real estate market seems to be constantly buzzing about baby boomers, Millennials, and Gen Z, but what about Gen X?
Born between 1965 and 1982, Gen X is the smallest age cohort by population, but they’re no less mighty when it comes to the housing market.
As a sandwich generation wedged between Millennials and baby boomers, Gen Xers are increasingly stepping up to keep their parents and children afloat while redefining how we live, buy, and move in today’s real estate landscape.
How exactly?
Though Gen X accounts for just 19% of the U.S. population, a new National Association of Realtors® report reveals they represent 24% of recent homebuyers—a significant slice of the market. Around 60% of Gen Xers own their homes, and these properties carry some serious value.
“Buyers who purchased homes before the [COVID-19] pandemic have benefited from substantial appreciation in property values,” says Jenna Stauffer, a global real estate adviser at Sotheby’s International Realty. “By selling after a few years, they’ve been able to leverage this equity to move up to more expensive properties, even in this challenging market.”
How Gen X bought homes
Gen X is the second-highest-earning generation with an average annual income of $126,900 in 2023.
They’ve climbed the career ladder, traded entry-level roles for senior positions, and amassed wealth that allows for larger homes—averaging 1,940 square feet.
That’s the second-largest home size of any generation.
But homeownership hasn’t come without challenges. Gen X also shoulders more debt than any other generation, including an average of $45,557 in student loans and an average of $278,935 in mortgage balances.
The silver lining? Many Gen Xers locked in historically low interest rates during the 2000s and early 2010s, with an average mortgage rate of just 4%, according to Freddie Mac.
However, this low rate is both a blessing and a curse.
With interest rates currently hovering around 7%, many Gen Xers are effectively “locked in” to their mortgages—and their homes. Many believe it doesn’t make financial sense to swap a home with a relatively low rate for a higher one, even as life circumstances push them to reconsider.
Gen X’s real estate dilemma
As the sandwich generation, Gen X is squeezed between supporting aging parents and helping adult children, a dynamic that shapes their housing decisions. A 2022 Pew Research Center survey found that 54% of Gen Xers provide financial support to a parent or child, often complicating their ability to move, upgrade, or even pay off their home.
A recent survey from Realtor.com® found that 30% of Gen Xers believe that financially supporting family members has made it impossible to buy a home or pay off their mortgage.
This intergenerational financial burden has contributed to the rise of multigenerational households, defined as homes with more than one adult generation. And around a third of young adults currently live with their parents in multigenerational households.
About 60 million Americans now live in multigenerational households, a figure that’s quadrupled over the past 50 years. For Gen X, the trend is both practical and strategic: 19% of Gen X homebuyers specifically look for homes that accommodate multiple generations, according to the NAR.
Multigenerational homes often feature separate entrances, soundproofing, or accessibility features to ensure independence for each generation. Interestingly, 30% of Gen X homeowners told Realtor.com they received financial contributions from their parents or children to purchase these homes. Rising real estate prices and difficult job markets have pushed many young adults to return to their parents’ homes, while aging parents prefer to stay close to family.
Stay, upgrade, or downsize?
As Gen Xers approach their 60s, many are weighing whether to move, upgrade, or stay put.
With record equity levels in their homes, they’re in a strong position to leverage that wealth—if they choose to.
While some Gen Xers are seeking larger homes—possibly to accommodate multigenerational needs—others are considering downsizing to reduce expenses as retirement looms.
Gen Xers looking to buy a home might consider whether they will eventually have to move their parents or children in.
“We’re finding that a lot of [Gen X] are still looking for a bigger home,” says Angie Golembiewski, a broker at Baird and Warner in Crystal Lake, IL. “Maybe they’ve put off moving for some time because of affordability or raising children. But even though we are in that approaching empty nester type of lifestyle, we do see that some of the Gen Xers are moving up still and looking for bigger homes.”
She says Gen Xers tend to choose larger units, stay in one place longer, and gravitate toward boutique properties within their neighborhood of choice.
For those still on the fence about buying, Golembiewski offers this advice: “There’s no perfect time to buy.”
Waiting for interest rates to drop could backfire as higher demand drives up prices.
“If it makes sense to be with your family, near your family, or to downsize to decrease expenses, do it,” she says.
