Older millennials are pulling away from the pack in the housing market—and they’re dominating the ‘hobbies’ economy, too

Older millennials are pulling away from the rest of their generation in the housing market. Now, they are pulling ahead in the hobby economy, too.

A new Bank of America Institute analysis finds that older millennials spend more per customer on hobbies than any other generation, outpacing Gen X, baby boomers, younger millennials and Gen Z. The group's hobby outlays were a little more than twice those of Gen Z in the three months through August, based on an index that sets Gen Z spending at 100.

In fact, BofA Institute economist Joe Wadford told Fortune over email, older Millennials lead in hobby spending across multiple measures. Not only do they spend the most per customer/buyer, but a higher share of older Millennials have hobby spending compared to any other generation. Millennials have seen accelerating hobby-related spending over the past two years, he added, while most other generations have seen cooling in both their spending or transactions.

The result mirrors an emerging divide in housing. Older millennials have become the highest-earning homebuyers, are more likely than younger millennials to be repeat buyers, and are moving into larger homes as their families and incomes grow. Many have had the chance to accumulate housing wealth and, if they locked in lower mortgage rates, enjoy more stable monthly housing costs than renters now facing high rents and down-payment hurdles.

Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors, told Fortune in April that a "definite split" was happening in the millennial generation, attributing it to those who locked in low mortgage rates — and those who didn't. When asked if she thinks this is a structural issue, she said "I think we're at that point right now … It becomes a renter versus an owner economic scenario."

This does not mean that all older millennials are prosperous homeowners, or that home equity directly pays for craft supplies, ski trips or educational toys, but the consumer spending data is mirroring the housing-market data. The oldest millennials are increasingly entering a more asset-backed, family-oriented phase of adulthood, while younger members of their own generation remain more exposed to housing costs and delayed ownership.

Wadford agreed that it's unclear whether Millennial homeowners spend disproportionately more than renters on hobbies and said he thinks it's more an age/life-stage effect, rather than a sign of a wealth divide. "Older Millennials seem to have more in common with younger Gen Xers than they do with Gen Z or even younger Millennials. That's why older Millennials' hobby spending aligns more with Gen X and Baby Boomers, rather than younger members of the same generation."