In an unexpected turn of events, baby boomers have reclaimed the top spot in home buying from millennials. According to the latest report by the National Association of Realtors, this generational shift marks a rare exception in recent trends, with significant implications for the housing market and beyond.

Discover Why Baby Boomers Are Leading the Housing Market Revolution

Unveiling the Generational Dynamics

The housing market has long been dominated by millennials, who, over the past decade, have consistently led the charge in home purchases across the United States. However, recent data paints a different picture. The 2025 Home Buyers and Sellers Generational Trends Report reveals that baby boomers now account for a staggering 42% of all U.S. home sales from July 2023 to July 2024, surpassing millennials at 29%. This reversal highlights a significant change in consumer behavior and financial priorities among different age groups.This phenomenon is not entirely unprecedented. Since 2013, only two reports—those from 2023 and 2025—have shown baby boomers outpacing millennials in home buying. Each annual report analyzes buyer activity spanning a 12-month period, underscoring the cyclical nature of these trends. Understanding the factors driving this generational shift requires a closer examination of both demographic and economic influences.

Challenges Facing First-Time Buyers

One contributing factor to millennials' decline in home buying is the decreasing number of first-time buyers entering the market. Traditionally, this group consists primarily of millennials navigating the challenges of raising families. In the latest report, first-time buyers represent just 24% of all purchasers, a sharp drop from the previous year's 32%. Brandi Snowden, director of member and consumer survey research at N.A.R., attributes this decline to several barriers, including limited housing inventory, affordability issues, and difficulties saving for down payments.These obstacles reflect broader economic pressures affecting younger generations. With rising property prices and stringent lending requirements, many millennials find themselves priced out of the market or reliant on alternative financing solutions. Consequently, their share of the home-buying pie has diminished, allowing baby boomers to capitalize on their financial advantages.

Baby Boomers: A Wealthier Cohort

In contrast to millennials, baby boomers possess substantial financial resources that enable them to dominate the housing landscape. Notably, 51% of older boomers (ages 71 to 79) and 39% of younger boomers (ages 61 to 70) purchased homes outright with cash during the 2023-24 period. This contrasts sharply with the majority of buyers under 45, where over 90% relied on loans and familial assistance to secure properties.The disparity in purchasing power underscores the wealth accumulation achieved by baby boomers throughout their careers. Their ability to pay in cash eliminates concerns about interest rates, mortgage approvals, and extended repayment terms. As a result, they can seize opportunities in a competitive market, often outbidding younger counterparts constrained by traditional financing methods.

Rising Trend of Multigenerational Living

Another notable trend highlighted in the 2025 report is the increasing prevalence of multigenerational home buying. Approximately 17% of all buyers opted for residences designed to accommodate multiple generations, up from 14% the previous year. This choice serves practical purposes, such as reducing living expenses, caring for elderly relatives, or providing space for adult children still living at home.Multigenerational living arrangements address various societal needs while fostering stronger family bonds. For instance, homeowners may choose larger properties equipped with additional bedrooms, bathrooms, and common areas to ensure comfort and privacy for all residents. Such decisions reflect evolving lifestyles and shifting priorities among American households.

Implications for the Future of Real Estate

The resurgence of baby boomers in the housing market carries important ramifications for real estate professionals, developers, and policymakers alike. As this generation continues to influence buying patterns, understanding their preferences and motivations becomes crucial for tailoring products and services accordingly. Moreover, addressing the challenges faced by younger buyers remains essential to maintaining a balanced and inclusive market.Looking ahead, stakeholders must consider strategies to enhance accessibility for first-time buyers while accommodating the growing demand for multigenerational living solutions. By doing so, they can foster sustainable growth within the industry and promote equitable opportunities for all participants.