Where Are the Millennials? Boomers Now Buy 42% of U.S. Homes With No Change In Sight

Millennials are being priced out of the housing market and replaced by their parents. According to the National Association of Realtors’ 2025 Home Buyers and Sellers Generational Trends Report, 42% of the home sales between July 2023 and July 2024 were by baby boomers, with millennials responsible for only 29%.

The numbers marked a stark turnaround from previous years when millennial home buyers had dominated. According to the latest NAR report, baby boomers aged 61 to 79 represented the largest home-buying segment, followed by millennials aged 27 to 45. Gen X-ers aged 46 to 60 were sandwiched in the middle, with 24% of the home-buying pie. Gen Z-ers aged 25 and below were 3%.

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The Cross Currents Of Low Inventory, High Prices And Interest Rates

The crosscurrents of low inventory, high prices, and high interest rates have contributed to the difficulty of saving up for a down payment, which has stymied millennials’ efforts as first-time home buyers, according to Brandi Snowden, director of member and consumer survey research at NAR. Boomers, however, had cash in the bank and paid for their homes without needing a mortgage, a difference from younger generations. 

“The market has shifted toward higher-priced homes selling as entry-level buyers are priced out of the market, which has led to near-record-high down payments,” Realtor.com Senior Economic Research Analyst Hannah Jones said, “It is likely this trend will continue until housing affordability improves.”

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All Cash Buyers Dominate

The latest trend does not favor the mortgage industry, with many buyers not considering loans. 

“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,” Jessica Lautz, NAR deputy chief economist and vice president of research, said in a statement. “Gen Z is slowly entering the housing market with the lowest household income and they’re more likely to be single than other buyers,” Lautz said. Interestingly, the report also showed that family members of different generations were not averse to combining resources with multi-generational purchases up to 17% in 2025 from 14% in 2024..

Boomers Will Occupy An Increasing Slice Of The Housing Market

Boomers are currently straddling two real estate fences—buying smaller homes for cash and transitioning into senior housing. The oldest boomers will turn 80 in under a year. According to The Wall Street Journal, the number of 80-year-olds will increase by 4 million to 18.8 million by 2030, a milestone at which people generally start to look for senior housing. Data service NIC MAP predicts 560,000 new units are needed to meet all the demand.

“We’ve never had a population pyramid that looks like this,” Arick Morton, chief executive of NIC MAP told the Journal. “The senior housing industry would need to develop twice as many units as it has ever developed in any single calendar year every year to keep up.” 

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According to the U.S. Census Bureau, by 2030 the younger boomer generation aged 65 and above is estimated to outnumber children for the first time in U.S. history. From a purely numerical perspective, older Americans, who are wealthier and more able to purchase housing for cash, will need a place to live. Should affordability remain an issue for younger generations, the ensuing years could continue to be dominated by boomers. 

Interest Rates — The Game Changer

Should interest rates drop, however, and inventory continues to rise, it could be a game changer, bringing younger buyers back into play, according to Barron's. As of late March, year-over-year housing inventory had risen for 73 consecutive weeks. However, interest rates have been on a roller coaster ride since President Donald Trump's "Liberation Day"  tariff announcement on April 2 and now sit over 7%, the highest rate since mid-February. For younger buyers looking to buy a home, the short-term outlook looks grim.

“Forget about housing in this environment. With mortgage rates back up and consumers certainly concerned about the job market, housing will also be on the weak side,” Nancy Lazar, chief global economist at Piper Sandler, told CNBC on April 11.

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