In a surprising twist that reflects changing dynamics in today’s real estate market, baby boomers have officially become the largest generational group of home buyers, according to the National Association of Realtors® (NAR) 2025 Home Buyers and Sellers Generational Trends report. For years, millennials were considered the dominant force in the housing market, but the latest data shows a major shift.
Baby Boomers Lead the Way For Home Buyers
In a surprising turn, baby boomers (ages 60–78) now account for 42% of all home buyers, surpassing millennials, who dropped to 29% from 38% last year. Younger boomers (ages 60–69) and older boomers (ages 70–78) are leveraging their financial stability, with half of older boomers and 40% of younger boomers purchasing homes entirely with cash. This trend underscores their ability to bypass financing, a stark contrast to younger generations.
“Baby boomers have overtaken millennials – the largest U.S. population – to become the top generation of home buyers,” said Jessica Lautz, NAR deputy chief economist. One key factor: nearly half of older boomers and two out of five younger boomers are buying homes with all cash, skipping financing altogether.
A Breakdown of Home Buyers by Generation
Millennials and Younger Buyers Face Affordability Hurdles: Millennials, particularly younger ones (ages 26–34), rely heavily on financing, with over 90% of buyers 44 and younger opting for mortgages. Additionally, 27% of younger millennials and 13% of older millennials (ages 35–44) used gifts from relatives or friends for down payments. First-time buyers, who made up 24% of the market (down from 32% last year), are most common among younger millennials (71%).
Older millennials, however, are transitioning to repeat buyers, purchasing larger, newer homes with bigger down payments, often fueled by home equity. “This shift reflects the increasing role of equity in enabling repeat purchases, while younger buyers continue to face affordability challenges,” Lautz noted.
Generation X: The Sandwich Generation: Generation X (ages 45–59) remains a significant force, holding steady at 24% of buyers. With a median household income of $130,000 – the highest among all generations – Gen X buyers are increasingly choosing multigenerational homes. Twenty-one percent of Gen X buyers opted for multigenerational living to accommodate aging relatives, adult children, or for cost savings. “Gen Xers are today’s sandwich generation,” Lautz said, highlighting their need for spacious homes despite their high incomes.
Generation Z: Emerging with Unique Trends: Generation Z (ages 18–25) represents just 3% of buyers but stands out with the highest share of single-female home buyers (30%). Like millennials, Gen Z tends to purchase older homes and has the lowest median household income, making affordability a key challenge as they enter the market.
The Importance of Real Estate Agents Across All Generations of Home Buyers
The role of real estate agents remains vital. 88% of buyers used a real estate agent to purchase their homes, and an equal percentage said they would recommend or reuse their agent in the future. Notably, Generation X (91%) and the Silent Generation (93%) showed the highest satisfaction rates with their agents.
On the selling side, baby boomers dominated once again, making up 53% of all home sellers. Sellers typically stayed in their homes for a median of 10 years, although younger millennials moved much sooner, usually within five years. When selling, millennials often achieved strong returns, with many selling for above their list price.
Summary
The rise of baby boomers as the leading home-buying demographic signals a new era in the housing market. Their financial flexibility, contrasted with the affordability challenges faced by younger generations, highlights the diverse needs shaping today’s real estate landscape. As multigenerational living grows and real estate agents remain essential, understanding these generational trends is key for buyers, sellers, and industry professionals navigating this dynamic market.
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