What did jesus mean by this generation?

Stained glass at St John the Baptist's Anglica...
Stained glass at St John the Baptist's Anglican Church http://www.stjohnsashfield.org.au, Ashfield, New South Wales. Illustrates Jesus' description of himself "I am the Good Shepherd" (from the Gospel of John, chapter 10, verse 11). This version of the image shows the detail of his face. The memorial window is also captioned: "To the Glory of God and in Loving Memory of William Wright. Died 6th November, 1932. Aged 70 Yrs." (Photo credit: Wikipedia)
Matthew 24:32–35 “Truly, I say to you, this generation will not pass away
until all these things take place. Heaven and earth will pass away, but my
words will not pass away” (vv. 34–35).

Our study of the first part of the Olivet Discourse (Matt. 24:1–35), has
endeavored to keep in mind Jesus’ warning to the leaders of Jerusalem that
judgment would fall upon them for rejecting the Son of God (23:29–39). This
prediction sets the stage for Christ’s words about the overthrow of the temple
and the destruction of Jerusalem, indicating that God’s wrath caused the ruin
of the Holy City in AD 70 (24:1–31). Jesus Himself is the Almighty’s
instrument of judgment, according to verse 30. God’s coming on the clouds is a
metaphor for God’s judgment in the Old Testament (Isa. 19:1; Ezek. 30:1–4);
therefore, Jesus is saying that He will execute the Creator’s perfect justice
upon that generation of unbelieving Israelites when He promises to come on the
clouds.

We argue for this approach to Matthew 24:1–35 because it makes the best sense
out of the passage, not to mention that our Lord’s credibility is called into
question if these verses are about things yet to come, not Jerusalem’s
destruction in AD 70. Jesus told His listeners that their generation would not
pass away until 24:1–35 was fulfilled (v. 34), but that generation died
without seeing His final return. Realizing this problem, many who believe
24:1–35 is yet to be fulfilled try to make “this generation” mean something
other than the people who first heard the Olivet Discourse. However, the Greek
for “this generation” is used throughout Matthew’s gospel to refer to the
people who lived at the time of Jesus. This view raises no such difficulties,
showing that the events of 24:1–35 did take place within the generation of
those who first heard Jesus, vindicating Him as a true prophet from God.

Dr. R.C. Sproul says there is “redemptive-historical importance [to]
Jerusalem’s destruction in AD 70” (The Last Days According to Jesus p. 26).
Though Jesus’ final return lies ahead (Acts 1:6–11), there was a coming of the
Son of Man in judgment a few decades after His resurrection, a coming vital
for understanding God’s salvation. The old temple was demolished shortly after
Christ ascended to heaven, visibly confirming Him as its replacement and the
only mediator between us and the Father (John 2:13–22; 14:6; Heb. 10:1–18).

We still wait for Jesus to return and usher in the new heaven and the new
earth. Still, we should not underestimate the significance of His judgment of
Jerusalem through Rome in AD 70. No longer is there one place in only one
country where we may gather for worship, and this confirms God’s intent to
save people from all over the world. Let us be grateful that we may worship
Him wherever we are and strive to make the praise of our Creator a part of our
daily lives.
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