A recent report from the National Association of REALTORS® reveals a stark generational divide in the U.S. housing market. Baby Boomers continue to be the most active buyers, purchasing 42% of homes, a figure unchanged from the previous year. In contrast, first-time homebuyers have fallen to an all-time low of just 21% of all buyers, highlighting significant affordability challenges and limited inventory for aspiring homeowners.
Key Takeaways
- Baby Boomers remain the largest group of homebuyers at 42%.
- First-time homebuyers have reached a record low of 21%.
- Millennials’ market share decreased, while Gen X saw a slight increase.
- Gen Z buyers are redefining homeownership milestones.
- Multigenerational homebuying has declined across all age groups.
Generational Homebuying Trends
During the period of July 2024 to June 2025, Baby Boomers maintained their leading position in home purchases, accounting for 42% of all transactions. Millennials saw their market share decrease to 26%, a 3% drop year-over-year. Gen X, however, edged up by 1% to represent 25% of buyers. Gen Z’s share grew to 4%, and the Silent Generation held steady at 4%.
The most concerning trend is the decline in first-time homebuyers, now at a historic low of 21%, down from 24%. Younger millennials constituted the largest segment of these first-time buyers at 60%, followed by older millennials at 33%. Gen X made up 21% of first-time buyers, with younger boomers at 8% and older boomers at 4%.
NAR Deputy Chief Economist Jessica Lautz noted, "The housing market remains sharply divided between homeowners with equity and first-time buyers trying to break in—many of whom are younger millennials. For many younger households, affordability challenges and limited inventory are still making homeownership difficult to achieve."
Multigenerational and Gen Z Buyers
Multigenerational homebuying saw a decline, with 14% of buyers purchasing homes to accommodate multiple generations, a 3% decrease. Boomers led this category at 25%, followed by millennials (23%), Gen X (19%), and the Silent Generation (16%).
Gen Z buyers, though a smaller segment, are making notable impacts. They exhibit the highest rate of single, female homeownership (33%) and the highest percentage of unmarried couples buying homes (17%). Lautz observed, "What stands out about Gen Z is how confidently they’re beginning to define homeownership for themselves… They may still be a small share of the market, but they’re already challenging old assumptions about who buys a home and when."
Millennial and Seller Insights
Despite a reduced overall market share, older millennials reported the highest median household income ($132,700) and purchased the largest homes (2,100 square feet). These buyers are increasingly entering middle age, often with children, a demographic previously associated more with Gen X.
Boomers also represented the largest group of home sellers, at 55%. The typical seller remained in their home for 11 years. While younger millennials tend to sell after about five years, older boomers often stay for around 15 years. Boomers are motivated by a desire for proximity to loved ones, downsizing, or retirement, rather than job changes or the need for larger homes as in previous years.
Millennial sellers achieved the highest prices, with a significant portion selling their homes for above the asking price.