In a significant demographic shift within the U.S. housing market, baby boomers have surpassed millennials to become the largest share of home buyers, according to the National Association of Realtors' 2025 generational trends report, as reported by the Washington Post.
The report, which analyzes recent housing trends across age groups, found that baby boomers — split into younger boomers (60–69) and older boomers (70–78) — collectively accounted for 42% of all home purchases in the past year. That marks a significant increase from the previous year and a reversal of the longstanding trend that saw millennials leading the homebuying market. Millennials' share fell to 29%, down from 38% last year.
"In a plot twist, 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 and vice president of research.
A key factor in the shift is the prevalence of cash purchases among older buyers.
Lautz noted that "half of older boomers and two out of five younger boomers are purchasing homes entirely with cash, bypassing financing altogether."
In contrast, over 90% of buyers under 45 used financing to purchase their homes. Among them, 27% of younger millennials (ages 26–34) and 13% of older millennials (ages 35–44) reported receiving a gift from family or friends to help with their down payment.
First-time buyers made up just 24% of all home purchases, a decline from 32% the year prior. Among younger millennials, however, 71% were buying a home for the first time, while older millennials increasingly represent repeat buyers.
"Older millennials are buying bigger and newer homes with larger down payments than their younger counterparts," Lautz said. "This shift reflects the increasing role of equity in enabling repeat purchases, especially among older generations, while younger buyers continue to face affordability challenges."
Generation X buyers (ages 45–59) maintained a steady share at 24% and continued to lead with the highest median household income of $130,000. Older millennials followed closely at $127,500.
Multigenerational living is also on the rise. Seventeen percent of all buyers purchased homes suited for more than one generation. Generation X led this trend at 21%, followed by younger boomers at 15%.
Generation Z, while still a small segment at 3% of the buyer pool, had the highest percentage of single-female buyers at 30%. Like millennials, Gen Z buyers tended to purchase older homes.
Nearly all buyers — 88% — used a real estate agent. Younger millennials were the most likely to do so at 90%, with most finding their agent through personal referrals.
On the selling side, baby boomers dominated again, making up 53% of sellers. Sellers typically remained in their homes for a median of 10 years, with younger millennials moving most frequently — typically after five years.
Homes sold for 100% of the list price on average, and younger millennials saw some of the strongest returns, with 27% selling above the asking price.
The NAR survey, distributed in July 2024 to 167,750 recent buyers, received 5,390 responses and had a 3.2% adjusted response rate.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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