The Blubber

Baby boomers have overtaken millennials as the leading generation of homebuyers, according to a new report from the National Association of Realtors (NAR).

In a notable shift, baby boomers accounted for 42% of all home purchases over the past year, while millennials made up just 29%. A year earlier, millennials led at 38% of buyers, compared to 31% for baby boomers.

Despite being the largest generational group in the U.S. and entering their prime homebuying years, millennials are losing ground—reflecting how low housing inventory, elevated mortgage rates, and record prices are increasingly shutting younger buyers out of the market.

Another sign of the affordability crunch: the share of first-time homebuyers dropped to 24%, down from 32% a year ago.

While higher mortgage rates have cooled overall home sales, older buyers—many of whom can pay in cash—have been less affected.

“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,” said Jessica Lautz, NAR deputy chief economist and vice president of research.

By contrast, more than 90% of homebuyers under age 44 used financing to complete their purchase, the report noted.

Millennials were also more likely to rely on family assistance. Among younger millennials (ages 26–34), 27% cited a gift from a relative or friend as part of their down payment, compared to 13% of older millennials (ages 35–44).

Baby boomers also made up the largest group of home sellers at 53%, offering a glimmer of hope for housing supply. According to Redfin, boomers—many now empty nesters—own nearly 30% of the country’s large homes, double the share held by millennials with children.

Nearly 30% of baby boomers surveyed by NAR said their main reason for buying was a desire to downsize.

Some analysts suggest that a “silver tsunami” could help ease housing shortages as more older homeowners look to scale down. Others caution that the benefits may be uneven, as supply and demand often don’t align geographically.

The NAR report reflects a growing generational divide in the U.S. housing market, where younger Americans face barriers that didn’t burden prior generations.

Federal Reserve data highlights this economic gap: as of the end of 2024, baby boomers held about 51% of all household wealth, while millennials held only 10%, and Generation X controlled just over 25%.