Baby boomers dominate housing, first-time buyers hit record low

Baby boomers remain the largest share of homebuyers in the U.S. — while first-time buyers have dropped to the lowest level on record, according to the National Association of Realtors (NAR).

Boomers accounted for 42% of all home purchases, unchanged from the prior year, according to the NAR 2026 Homebuyers and Sellers Generational Trends report.

Millennials made up 26% of buyers, down from 29%, while Gen X rose slightly to 25%. Gen Z and the Silent Generation each represented 4% of buyers.

At the same time, first-time buyers accounted for just 21% of all transactions — down from 24% a year earlier and the lowest level since the organization began tracking the data in 1981.

“The housing market remains sharply divided between homeowners with equity and first-time buyers trying to break in — many of whom are younger Millennials,” said NAR Deputy Chief Economist Jessica Lautz. “For many younger households, affordability challenges and limited inventory are still making homeownership difficult to achieve.”

Data takes home transactions into account that were completed between July 2024 and June 2025.

First-time buyers lose ground

The report showed a decline in first-time buyers across nearly all age groups.

Among younger Millennials, 60% were first-time buyers — down from 71% the previous year. Older Millennials also saw a decline, with 33% entering the market for the first time compared with 36% a year earlier.

Shares among older generations remained low. Just 8% of younger Boomers and 4% of older Boomers were first-time buyers, while the Silent Generation dropped to 3%.

Data reflects broader affordability challenges and higher mortgage rates that have made it more difficult for new buyers to enter the market.

Move-up buyers, multigenerational buying

While Millennials lost overall market share, older members of the generation are increasingly purchasing larger homes and leveraging accumulated equity.

Older Millennials reported the highest median household income among all buyer groups at $132,700. They also purchased the largest homes — with a median size of 2,100 square feet — and were less likely to be first-time buyers compared with their younger counterparts.

“Older Millennial buyers are now entering middle age, and with that comes a shift,” Lautz said. “This cohort is now the highest-earning generation of homebuyers, buys the largest homes and is most likely to have children living with them. Those traits were once more commonly associated with Gen X buyers, who are now increasingly looking toward empty-nesting and retirement.”

Multigenerational home purchases declined overall, accounting for 14% of all transactions and down from 17% the previous year.

The trend varied by age group. Younger and older Millennials increased their participation in multigenerational purchases, while Gen X, Boomers and the Silent Generation saw declines.

Common reasons for these purchases included caring for aging parents, reducing housing costs and accommodating adult children returning home.

Gen Z reshapes early homeownership trends

Gen Z buyers — though still a small share of the market — are beginning to influence homeownership patterns.

Among Gen Z buyers, 35% were single women, the highest share among all generations. Another 17% were unmarried couples, also the highest among age groups.

“What stands out about Gen Z is how confidently they’re beginning to define homeownership for themselves,” Lautz said. “They may still be a small share of the market, but they’re already challenging old assumptions about who buys a home and when.

“For many of these buyers, marriage and children are no longer the defining milestones before a home purchase. The driving force is simply the desire to own a home of their own.”

Boomers lead home sellers

Baby Boomers also dominated the selling side of the market, accounting for 55% of all home sellers.

Across all generations, sellers typically remained in their homes for a median of 11 years. Younger Millennials sold after about five years, while older Boomers stayed in their homes for roughly 15 years before selling.

“Baby Boomers are at a point in life when they have the flexibility to move, often with housing equity to help purchase their next home,” Lautz said. “In earlier years, Baby Boomers — like Millennials today — may have moved because of a job change or the need for a larger home.

“Today, many Baby Boomers are embracing choice and moving to be closer to friends and family, to downsize, or to retire and enjoy a work-free lifestyle.”

Agents remain central to transactions

Despite changes in buyer demographics, most transactions continue to involve real estate agents.

Among buyers, 88% purchased their home through an agent and 91% said they would use their agent again or recommend them to others.

On the selling side, 91% of sellers worked with an agent. Homes typically sold for a median of 99% of the final list price.

Older Millennials were the most likely to use an agent when selling, at 92%. Younger Millennial sellers were among the most likely to exceed asking price, with 19% selling for 101% to 110% of list price and 11% selling for more than 110%.

Jonathan Delozier reported and wrote this article with drafting assistance from HousingWire Automation, an editorial tool that helps transform announcements and industry data into HousingWire-style news coverage.