Boomers Are Buying More Homes Than Any Other Generation

Baby Boomers are not only dominating the U.S. housing market in terms of homeownership, but this year, they have also reclaimed the title of the largest demographic of homebuyers, according to a new report.

The National Association of Realtors's (NAR) "2025 Home Buyers and Sellers Generational Trends Report" found that millennials have fallen significantly from the top position they held last year, which has now been regained by the older generation.

That is happening despite the fact that millennials—born between 1980 and 1998—are in a crucial time of their life during which they are likely to be settling in their careers, buying homes, and forming their own families.

Why It Matters

The ongoing housing affordability crisis in the U.S. is likely to impact the younger generations of homebuyers harder than the older ones.

Boomers who already own a home are likely sitting on millions of dollars in equity, thanks to the recent rise in home values, and many are still holding on to lower mortgage payments.

Younger Americans who have tried to get on the property ladder in recent years, on the other hand, have faced skyrocketing home prices, rising housing costs—including homeowner insurance, homeowner association (HOA) fees, and property taxes—and historically high mortgage rates, which have pushed them to the sidelines of the market.

What to Know

This year, baby boomers—those born between 1946 and 1964—represent 42 percent of buyers in the market, against only 24 percent of Gen Xers, 29 percent of millennials and only 3 percent of Gen Zers, according to the NAR report.

Younger boomers—born between 1955 and 1964—are leading the change, with 26 percent of total buyers in the market against 16 percent of older boomers—born between 1946 and 1954. By comparison, older millennials—born between 1980 and 1989—represent a bigger share of homebuyers in the market than younger millennials—born between 1990 and 1998—at 17 percent against 12 percent.

Millennial buyers have clearly withdrawn from the market over the past year. Among younger millennials, the share of buyers in the U.S. market has dropped from 17 percent to 12 percent, while among older millennials, it slid from 21 percent to 17 percent.

The share of first-time buyers in the market, which is overrepresented by millennials, dropped to 24 percent this year from 32 percent in 2024. Seventy-one percent of younger millennials are first-time homebuyers this year, compared to 36 percent of older millennials and 62 percent of Gen Zers.

While millennials are pulling out of the market, boomers are stepping in. Not only do they represent the biggest share of buyers in the U.S. market, but they also represent 53 percent of sellers—up from 45 percent last year—against 24 percent of Gen Xers, 19 percent of millennials, and only 2 percent of so-called Zoomers.

Compared to last year's report, the numbers for Gen Zers, Gen Xers and the Silent Generation are relatively unchanged.

Why Are So Many Boomers Buying Homes Now?

According to NAR, there are several reasons why so many boomers want to buy homes now, despite the fact that they likely already own a property.

Many are moving to be closer to friends and family in their retirement, while others are looking to downsize because their homes are too big now that their children have flown from the nest.

Many boomers are also buying homes where they can live with their adult children, and vice versa: the report found that multi-generational home purchases are on the rise, with more buyers citing the need to accommodate aging parents or adult children.

Why Are Millennials Backing Off The Market?

Rent prices have skyrocketed since 2020 due to a combination of inflation, low inventory, and shifts in demand. At a national level, rents were 3.5 percent higher in February compared to a year earlier, according to Zillow data, at an average of $1,980.

While rent remains more affordable than buying a home and prices have flattened in the last couple of years, many tenants are still struggling to save enough money to take the leap towards homeownership.

High rental costs, credit card debt and student loans, according to NAR, are weighing heavily on aspiring millennial homebuyers. Forty-three percent of younger millennials said they have student loan debt with a median loan balance of $30,000, the report found, compared to 29 percent of older millennials with a median of $35,000.

By comparison, only 5 percent of older boomers have student loan debt, at a median balance of $22,000.

Stubbornly high mortgage rates are also killing many millennials' hopes of buying a home in the current market. The NAR report found that a majority of buyers (74 percent) financed their home purchase—a share that decreases as the buyer's age increases.

Younger buyers continue to depend on savings for their down payment, NAR found, while older buyers can use the money made through selling their previous home. Millennials often have to rely on their family members to be able to afford a down payment on a home: 33 percent of younger millennials received down payment help in the form of a gift or a loan from a friend or relative, NAR found.

As of March 27, the 30-year fixed-rate mortgage was 6.65 percent, according to Freddie Mac. Experts expect mortgage rates to continue lingering between 6 percent and 7 percent throughout 2025 and 2026.