According to the National Association of REALTORS®, the housing market is increasingly being driven by baby boomers, whose accumulated home equity has given them a significant advantage in today’s higher-rate, higher-price environment.
Baby boomers now account for 42% of all home buyers and 55% of home sellers, making them the largest generation on both sides of the market. Their financial flexibility allows many to purchase homes with substantial equity—or even all cash—while younger buyers continue to face affordability challenges. Millennials, once the largest buying group, have fallen to 26% of buyers, while first-time homebuyers dropped to a record-low 21%, the lowest share since NAR began tracking the data in 1981.
The report notes that many boomers are moving by choice rather than necessity. Common motivations include downsizing, retiring, or relocating closer to family and friends. In contrast, younger buyers are often delayed by rising home prices, higher mortgage rates, limited inventory, and student loan debt. Despite these obstacles, there are signs of improvement as inventory slowly increases and affordability stabilizes in some markets.
Across every generation, buyers and sellers overwhelmingly rely on REALTORS® for guidance, negotiation expertise, and market knowledge. While younger buyers tend to value education throughout the homebuying process, older buyers appreciate agents who help identify property strengths and potential issues, reinforcing the value of experienced representation in today’s market.
Source : https://bit.ly/4wckFTS
By: Jon Iacono