Something flipped at the top of the housing market. Baby Boomers now rank as the largest generation of home buyers in the country, at 42% of buyers, while Millennials slipped to 26%. First-time buyers fell to a record-low 21%, the smallest share since 1981. Gen Z holds just 4%, yet its buyers look nothing like the cohorts above them.
This article breaks down home ownership by generation: which group buys the most homes and why, what dragged first-time buyers to a historic low, and how Gen Z is stepping into the market on its own terms.
Which generation buys the most homes?
Baby Boomers, and it is not close.
Boomers held the top spot for a second straight year. Millennials gave up three points, and Gen X rose to 25%.
The math behind boomers buying houses comes down to one equity. Older boomers have owned their homes a median of over 15 years, long enough for prices to climb and mortgages to shrink. When they sell, that profit funds the next place. More than half of younger and older Boomers used home-sale proceeds for their down payment, and plenty skipped a mortgage altogether.
Three things pull them back into the market:
- A downsize once the kids move out
- A move closer to family or grandchildren
- A retirement home somewhere cheaper or warmer
Why are first-time home buyers at a record low?
First-time buyers made up a record-low 21% of the market, the smallest share since NAR started tracking it in 1981. The typical first-timer is now 40 years old, an all-time high.
The same decline shows up across the related first-time home buyer statistics:
- Millennials, long the main source of first-time demand, dropped to 26% of all buyers
- Younger Millennials still lead first-time purchases at 60%, below last year’s 71%
- The median first-time buyer is now 40, older than the late-20s typical in the 1980s
Older Millennials earned the highest median income of any generation at $132,700, and their share of buyers still dropped. A high salary no longer guarantees a purchase. Home prices stand at record highs and mortgage rates stay in the mid-6% range, so even high earners get priced out.
How many gen z buyers are buying homes?
Not many. Gen Z, defined as ages 18 to 26 in the report, made up 4% of buyers, one point above last year. The way they buy stands out more than the number itself.
Gen Z buyers are more likely to be single and unmarried than any older generation:
- 35% single women, the highest share of any generation
- 17% unmarried couples, also the highest of any generation
- Most buy before marriage or children, unlike older buyers
They also buy young and buy with limited budgets. Gen Z posts the lowest median household income of any group at $76,000, yet more than half purchase solo. For a cohort fresh out of school or early in a first job, that says plenty about shifting priorities.
Gen X leads in multigenerational home buying
Multigenerational buying is a small corner of the market, and it shrank this year. Only 14% of buyers purchased a multigenerational home, down from 17% a year earlier. Gen X bought them at the highest rate of any generation, 19%.
Gen X buys these homes for a concrete reason: they are the sandwich generation, often supporting two households at once, teenagers or adult kids who moved back plus aging parents who need help.
The reasons buyers gave for going multigenerational:
- Caring for aging parents under one roof
- Cost savings on a single shared mortgage and utility bill
- Adult children over 18 returning home
For a Gen X household, the caregiving need and the money math point the same way. One larger house costs less than running two, and it keeps relatives close enough to help day to day. That overlap is why almost one in five Gen X purchases made room for extended family.
Which generation sells the most homes?
Baby Boomers, by a wide margin. They made up 55% of all sellers, more than any other generation.
How long each group owns a home before selling explains the gap:
Older Boomers keep a home three times as long as Younger Millennials. That stretch of ownership is what builds the equity that funds their next purchase.
Why each group sells breaks down by life stage:
- Boomers sell to downsize, retire, or move nearer family
- Gen X and older Millennials sell for more room as households grow
- Younger Millennials move fastest, often outgrowing a first home after five years
How do home buyers finance their purchase and use agents?
Most buyers still rely on a professional and a loan. 88% used an agent or broker, and roughly 74% financed their purchase, which puts cash buyers near one in four, a record share led by equity-rich Boomers.
A few patterns stand out among millennial home buyers and everyone else:
- Financing falls off with age; nearly all buyers under 45 took out a loan, while many Boomers paid outright
- Younger Millennials have the most student debt, a median balance of $30,000
- 91% of buyers said they would use the same agent again
The distance stayed short for most people. Younger Boomers traveled the furthest at a median of 45 miles, while Gen Z stayed closest at 12 miles, usually near friends and family.
Final thoughts
Baby Boomers lead both sides of the market, 42% of buyers and 55% of sellers, powered by 15-plus years of built-up equity. Millennials slipped to 26% as first-timers hit a record-low 21%. Gen Z holds 4%, younger and more single than any generation before it.
Ana Ratishvili
Ana is a professional literary writer with a Master’s Degree in English literature. Through critical analysis and an understanding of storytelling techniques, she can craft insightful guides on how to write literary analysis essays and their structures so students can improve their writing skills.
