WASHINGTON – (By Dale King, Realty News Report) – In a move that underscores the persistently shifting nature of the U.S. housing market, baby boomers have regained their standing as the largest generational group of home buyers, says a report just issued by the National Association of Realtors.
NAR’s “2025 Home Buyers and Sellers Generational Trends” account says the boomer crowd makes up 42 percent of all home purchasers while millennials have dropped to 29 percent — down from the 38 percent level the younger buyers registered just one year ago.
“In a plot twist, baby boomers have overtaken millennials – the largest segment of the U.S. population – to become the top generation of home buyers,” said Jessica Lautz, NAR’s deputy chief economist and vice president of research.
Not only are they on top, but many have accumulated substantial bucks along the way. “What’s striking,” said Lautz, “is that half of older boomers and two out of five younger boomers are purchasing homes entirely with cash, bypassing financing altogether.”
Financing is choice of younger buyers
By comparison, she said, more than 90 percent of buyers aged 44 and younger financed their home purchases. Twenty-seven percent of younger millennials (ages 26-34) and 13 percent of older millennials (ages 35-44) said a gift from a relative or friend was one of the sources for their down payment.
NAR’s examination of home buying activity relating to generational trends revealed that 24 percent of recent home purchasers were buying for the first time, a significant drop from 32 percent last year. First-time home acquisitions were most common among younger millennials (71 percent) while older millennials are now more likely to be repeat buyers.
Lautz noted that “older millennials are buying bigger and newer homes with larger down payments than their younger counterparts. This shift reflects the increasing role of equity in enabling repeat purchases, especially among older generations, while younger buyers continue to face affordability challenges.”
Gen X in financial lead
The NAR economist said Generation X home buyers continue to lead all age groups on the economic front with a median household income of $130,000, followed by older millennials at $127,500.
NAR’s market analysis also determined that multigenerational home buying is on the rise, with Generation X leading that trend as well. Seventeen percent of all home buyers purchased a multigenerational home – up from 14 percent last year.
As stated, Generation X led the way with 21 percent choosing multigenerational living, followed by younger baby boomers at 15 percent.
“Gen Xers are today’s sandwich generation,” said Lautz. “They are purchasing multigenerational homes to accommodate aging relatives, children over the age of 18 and even for cost savings.” While members of Generation X are making their purchases with money from high household incomes, they may still feel the squeeze as they search for a home that serves everyone at an affordable price.
In the meantime, Generation Z – while still a small segment of the market (3 percent of all buyers) – had the highest share of single-female home buyers at 30 percent. And like millennials, they tend to purchase older homes compared to other generational segments.
“Gen Z is slowly entering the housing market with the lowest household income and they’re more likely to be single than other buyers,” Lautz noted.
Boomers rock the for-sale market
On the selling side, baby boomers again dominated, accounting for 53 percent of those who put a ‘For Sale’ sign on the front lawn. Across all generations, sellers stayed in their homes for a median of 10 years. Younger millennials remained more mobile, typically selling after five years, while older boomers sold after 16 years.
Ninety percent of home sellers worked with a real estate agent, and homes typically sold for 100 percent of the final list price. Younger millennials were the most likely to use an agent (94 percent) and often saw the strongest returns. Twenty-seven percent sold their homes for 101 percent to 110 percent of the list price, and 13 percent sold for more than 110 percent of the asking price.
Since 2013, NAR has produced the “Home Buyers and Sellers Generational Trends” report which offers insights into differences and similarities across generations of home buyers and sellers. The data is taken from the annual “Profile of Home Buyers and Sellers.”
April 6, 2025 Realty News Report Copyright 2025
Photo credit: Cynthia Lescalleet, CALpix, Realty News Report, Copyright 2025
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