Baby boomers are now the largest group of homebuyers
For the first time in recent history, baby boomers have overtaken millennials as the largest share of homebuyers, making up roughly 42% of all purchases.
What’s driving this shift isn’t income — it’s accumulated housing wealth.
Many baby boomers have owned homes for decades, benefiting from years of home price appreciation. As a result, they’re entering today’s market with:
- Significant home equity from previous purchases
- The ability to make larger down payments — or avoid financing altogether
- More flexibility in timing and location
In fact, a substantial share of baby boomer buyers are purchasing homes entirely with cash, giving them a major advantage in competitive situations.
Unlike younger buyers, many baby boomers are also making lifestyle-driven moves — downsizing, relocating closer to family or purchasing homes for retirement — rather than buying out of necessity.
Generational breakdown of today’s buyers
| Generation | Ages | Share of Buyers | Key Advantage |
|---|---|---|---|
| Silent Generation | 80–100 | 4% | High equity, ability to pay cash |
| Baby Boomers | 61–79 | 42% | High equity, ability to pay cash |
| Gen X | 46–60 | 25% | Peak earning years, higher incomes |
| Millennials | 27–45 | 26% | Largest buyer pool, but constrained |
| Gen Z | 18–26 | 4% | Entering early, affordability-focused |
What it means: Today’s market rewards those who already own property. Buyers with equity can move more easily — and compete more aggressively — than those entering for the first time.
First-time buyers hit a record low
At the same time, first-time buyers now make up just 21% of the market — the lowest level ever recorded by NAR.
This is a dramatic shift from historical norms, when first-time buyers typically made up closer to 40% of home purchases.
The reason comes down to affordability:
- Home prices remain elevated after years of rapid growth
- Mortgage interest rates have increased monthly payments
- Inventory remains tight, especially for entry-level homes
As a result, many prospective buyers are being priced out — or delaying their purchase altogether.
First-time buyer trends
Another major shift: buyers are getting older. The median age of first-time buyers has risen to around 40, reflecting how long it now takes to save and qualify for a home.
| Metric | Latest Data |
|---|---|
| First-time buyer share | 21% (record low) |
| Historical norm | 40% (pre-2008 average) |
| Median age of first-time buyers | 40 years old |
| Trend | Buyers entering market later in life |
What it means: Homeownership is no longer a milestone reached in your 20s or early 30s for many Americans. Instead, it’s increasingly delayed — reshaping long-term wealth-building opportunities.
Millennials are still active — but face more barriers
Millennials remain a major presence in the housing market, but their role is evolving.
Younger millennials still make up the majority of first-time buyers, while older millennials are increasingly becoming repeat buyers. However, across the board, they’re facing more friction than previous generations.
Key challenges include:
- Saving for a down payment while managing rent, student loans and inflation
- Competing against buyers who can make all-cash offers
- Entering the market later, often with higher financial pressure
Many millennial buyers are also relying on outside help. A notable share report receiving financial assistance from family or friends to cover down payments — something far less common in previous generations.
What it means: Millennials are still driving demand — but they’re doing so under tighter financial constraints, which is changing how and when they buy.
Gen Z is entering the market earlier than expected
While still a small portion of the market, Gen Z is beginning to make its presence known, accounting for a growing share of buyers.
Unlike millennials, many Gen Z buyers are approaching homeownership with a more pragmatic mindset:
- Targeting lower-cost markets or smaller homes
- Entering the market earlier when possible
- Leveraging family support or co-buying strategies
At the same time, they’re entering a market that is significantly more expensive than it was for previous generations at the same age.
What it means: Gen Z’s early entry suggests long-term demand remains strong — but affordability will likely continue to shape how this generation buys.
Cash purchases are playing a bigger role
One of the clearest signals of today’s market shift is the rise in cash purchases, which now account for roughly one-quarter of all transactions.
This is a major change from historical norms, when fewer than 10% of buyers paid all cash.
Cash buyers — many of whom are older or repeat buyers — have distinct advantages:
- Faster closings
- More attractive offers to sellers
- No exposure to mortgage rate fluctuations
In a higher-rate environment, avoiding financing altogether has become one of the strongest competitive advantages in the market.
What it means: The ability to buy without a mortgage is becoming a key differentiator — further widening the gap between first-time buyers and repeat buyers.
The housing market is becoming more divided
Taken together, these trends point to a clear reality: today’s housing market is increasingly split between those who have equity and those who don’t.
NAR data highlights this divide:
- Equity-rich homeowners are buying and selling more freely
- First-time buyers are struggling to enter the market
- Younger generations are facing higher barriers than previous cohorts
Who has the advantage in today’s market?
| Buyer Type | Advantage in Today’s Market |
|---|---|
| Repeat buyers | Built-up equity from previous homes |
| Cash buyers | Stronger, more competitive offers |
| First-time buyers | Limited leverage due to affordability |
| Younger buyers | Facing higher barriers to entry |
What it means: The housing market is no longer just competitive — it’s segmented. Financial starting point matters more than ever.
Sellers are also older — and benefiting from equity gains
The generational shift isn’t just happening on the buying side — it’s just as pronounced among sellers.
Older homeowners now make up the majority of sellers, many of whom:
- Have owned their homes for 10+ years
- Are sitting on significant equity gains
- Are selling from a position of financial strength
This long-term ownership trend has allowed sellers to build wealth that can be rolled into their next purchase — or used to fund retirement.
At the same time, many are choosing to move for lifestyle reasons rather than necessity, including downsizing or relocating closer to family.
What it means: Today’s sellers aren’t just listing homes — they’re unlocking years of accumulated wealth, which is then recycled back into the market.
What this means for buyers and homeowners
These trends offer important context depending on where you are in your homeownership journey:
- First-time buyers: Preparation, flexibility and strategy are critical in a competitive market
- Current homeowners: Your home equity may give you more options than you realize
- Move-up buyers: Timing and leverage can play a significant role in your next purchase
Bottom line
The 2026 generational trends data from the National Association of REALTORS® makes one thing clear: today’s housing market is being driven by those who already own homes.
As affordability challenges persist, generational divides will continue to shape who can buy, who can sell — and how wealth is built through real estate.
Source: 2026 Home Buyers and Sellers Generational Trends Report
