Gen X Homebuyers: The Unsung Power Players of Real Estate

When discussing the real estate market, the spotlight often falls on Millennials, Baby Boomers, or even Gen Z. But Gen X homebuyers—born between 1965 and 1982—are quietly carving out a significant niche, contributing 24% of recent home purchases despite being only 19% of the U.S. population. As the “sandwich generation,” they balance supporting both aging parents and adult children while navigating unique real estate challenges and opportunities.

Who Are Gen X Homebuyers?

Gen X represents a unique demographic in the housing market. This generation is characterized by career maturity, financial obligations, and family dynamics that heavily influence their housing decisions. A National Association of Realtors® report highlights that 60% of Gen Xers own homes with significant value, thanks to property appreciation over the years. Their average annual income of $126,900 and a preference for spacious homes averaging 1,940 square feet make them the second-highest-earning and second-largest-home-buying generation.

However, this financial stability comes with challenges. Gen X carries more debt than any other generation, including an average of $278,935 in mortgage balances. Many benefited from low mortgage rates in the early 2000s but now face dilemmas due to rising rates.

The Housing Dilemma: To Stay, Upgrade, or Downsize?

For many Gen X homebuyers, the decision to stay put, upgrade, or downsize hinges on life circumstances. As they approach their 60s, some seek larger homes to accommodate multigenerational living, while others consider downsizing to reduce expenses. Realtor.com highlights that around 19% of Gen X buyers specifically look for homes designed for multigenerational households, complete with features like separate entrances and accessibility accommodations.

Multigenerational living isn’t just a trend for Gen X—it’s often a necessity. A Pew Research survey found that 54% of Gen Xers provide financial support to a parent or child. Rising housing costs and stagnant wages for younger generations have driven many adult children to return home, while aging parents prefer proximity to family.

The Role of Gen X in Multigenerational Living

As reported by Realtor.com, about 60 million Americans now live in multigenerational households, a number that has quadrupled in the last 50 years. For Gen X, this setup is both practical and strategic, offering shared financial responsibilities and support. Interestingly, 30% of Gen X homeowners report receiving financial contributions from family members to help with home purchases.

Many of these homes are designed with flexibility in mind, ensuring that multiple generations can coexist comfortably. These innovative designs highlight the adaptability of Gen X homebuyers in meeting evolving family needs.

Real Estate Decisions in a High-Interest Market

The rise of interest rates, currently around 7%, complicates mobility for Gen Xers who locked in historically low rates. For many, selling a home with a 4% mortgage to take on a higher rate feels like a financial misstep. Jenna Stauffer, a global real estate adviser, notes that those who bought before the pandemic have leveraged equity to move into higher-value properties. However, for those who remain, the decision often revolves around family priorities and long-term financial goals.

Why Gen X Matters in Real Estate

The contributions of Gen X homebuyers to the housing market cannot be overlooked. As Julie Gerstein of Realtor.com notes, this generation is redefining real estate trends while managing intergenerational responsibilities. From multigenerational homes to strategic moves, Gen X’s impact on the housing market reflects a balance of practicality and foresight.

For those on the fence about buying, real estate experts advise focusing on what aligns with family and financial needs rather than waiting for a “perfect time.” Whether staying, upgrading, or downsizing, Gen X continues to make bold decisions that shape today’s real estate landscape.