(NewsNation) — Baby boomers have surpassed millennials and are buying more homes than every other generation, according to a new National Association of Realtors report.
In a reversal of generational trends, baby boomers accounted for 42% of all homebuyers in the past year, while millennials made up 29%. A year earlier, millennials were 38% of all buyers compared to baby boomers at 31%.
Millennials lost ground despite being the largest generational cohort in the U.S. and entering their prime homebuying years — a sign that low inventory, higher mortgage rates and record home prices are making it more difficult for younger buyers to break into the housing market.
Another indicator of the affordability crisis: The share of first-time homebuyers dropped to 24%, down from 32% last year.
Elevated mortgage rates have slowed home sales, but older buyers, who are more likely to pay in cash, have been less affected by the shift.
“What’s striking is that half of older boomers [ages 70-78] and two out of five younger boomers [ages 60-69] are purchasing homes entirely with cash, bypassing financing altogether,” Jessica Lautz, NAR deputy chief economist and vice president of research, said in a statement.
Meanwhile, more than 90% of buyers 44 years and younger financed their home purchase, the report said.
Millennials were also more likely to rely on family support. Some 27% of younger millennials (ages 26 to 34) and 13% of older millennials (ages 35 to 44) cited a gift from a relative or friend as one of the sources for their down payment.
Although they were eager buyers, baby boomers also made up the largest share of sellers at 53%. That’s somewhat encouraging given that empty-nest baby boomers own nearly 3 in 10 large U.S. homes — twice as many as millennials with kids, according to Redfin.
Nearly 30% of baby boomers in the NAR’s latest report said their primary reason for buying was a desire for a smaller home.
Some experts have speculated that a “silver tsunami” could boost the supply of homes as a wave of older homeowners start to downsize. Others are less optimistic because supply and demand don’t match up on the map.
The NAR’s findings underscore a growing generational divide as younger Americans struggle to afford homes that seemed far more accessible to their parents.
Recent data from the Federal Reserve highlights the age split in the U.S. economy. Baby boomers owned about 51% of all household wealth at the end of 2024, while millennials accounted for roughly 10%, and Gen Xers held just over a quarter.
The NAR’s latest generational trends report is based on survey responses from 5,390 homebuyers who purchased a primary residence between July 2023 and June 2024.
Share of recent homebuyers by generation, according to the NAR:
- Baby Boomers (ages 60-78): 42%
- Millennials (ages 26-44): 29%
- Generation X (ages 45-59): 24%
- Silent Generation (ages 79-99): 4%
- Generation Z (ages 18-25): 3%
Total may not add up to 100% due to rounding.
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