Residential Real Estate News
Baby Boomers Biggest Cohort of U.S. Home Buyers in 2025 as Millennials Decline
In a notable shift in the housing market, baby boomers have surpassed millennials as the largest generational group of home buyers, according to the National Association of Realtors (NAR).
NAR's 2025 Home Buyers and Sellers Generational Trends report reveals that younger boomers (ages 60-69) and older boomers (ages 70-78) together accounted for 42% of all home buyers in the past year. Meanwhile, the share of millennial buyers dropped from 38% to 29%, while Generation X (ages 45-59) remained steady at 24%.
"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. "What's striking is that half of older boomers and two out of five younger boomers are purchasing homes entirely with cash, bypassing financing altogether."
While boomers are more likely to buy with cash, younger buyers continue to rely on financing and family support. Over 90% of buyers under 44 financed their purchase, with 27% of younger millennials (ages 26-34) and 13% of older millennials (ages 35-44) receiving financial gifts from relatives or friends for their down payments.
First-Time Home Buying Declines
The report also highlights a drop in first-time home buyers, who comprised just 24% of all buyers this year, down from 32% last year. Among younger millennials, first-time buying remained prevalent (71%), but older millennials are now more likely to be repeat buyers.
"Older millennials are purchasing bigger and newer homes with larger down payments than their younger counterparts," Lautz noted. "This shift reflects the increasing role of equity in enabling repeat purchases, while affordability challenges persist for younger buyers."
Income and Multigenerational Living Trends
Generation X buyers had the highest median household income at $130,000, followed by older millennials at $127,500. The trend of multigenerational living also grew, with 17% of all buyers opting for multigenerational homes--up from 14% last year. Generation X led this trend (21%), followed by younger boomers (15%).
"Gen Xers are today's sandwich generation," said Lautz. "They are buying homes that accommodate aging relatives, adult children, and provide cost-saving benefits. Despite their high incomes, they still feel financial pressure when purchasing homes that meet multiple needs."
Emerging Generation Z and the Role of Real Estate Agents
Generation Z buyers, though a small share of the market (3%), had the highest percentage of single-female buyers (30%) and, like millennials, tend to purchase older homes. "Gen Z is slowly entering the market with the lowest household incomes, and they're more likely to be single buyers," Lautz noted.
Nearly 88% of buyers used a real estate agent, with younger millennials being the most likely (90%). Referrals remained the primary method for selecting an agent, especially among younger (54%) and older millennials (42%), while older buyers preferred working with an agent they had previously used.
The majority of buyers (88%) reported they would use their agent again or recommend them, a sentiment even stronger among Generation X (91%) and the Silent Generation (93%).
Boomers Dominate Home Selling
On the selling side, baby boomers led the market, representing 53% of all home sellers. Across generations, sellers typically stayed in their homes for a median of 10 years. Younger millennials moved more frequently (five-year median), while older boomers sold after an average of 16 years.
Real estate agents played a critical role in selling transactions, with 90% of sellers working with an agent. Homes generally sold for 100% of the final list price, and younger millennials often saw the strongest returns--27% sold their homes for 101%-110% of the list price, while 13% sold for more than 110%.
