In an unexpected twist in the housing market, baby boomers have reclaimed their position as the leading demographic of homebuyers in the United States. According to a recent report by the National Association of Realtors, individuals aged 60 to 78 accounted for 42% of all home purchases over the past year. This figure significantly outpaces millennials, who made up only 29% of buyers during the same period. The shift marks a notable decline for millennials, whose share fell from 38% just a year prior. While both generations are active in the housing market, differing financial strategies and economic realities highlight contrasting approaches to homeownership.

The resurgence of boomers as dominant players in the housing market is driven partly by their ability to make cash purchases. A striking trend shows that more than half of older boomers (ages 70-78) bought homes outright with cash, while approximately 40% of younger boomers followed suit. In contrast, millennials predominantly rely on financing, with over 90% securing mortgages to fund their home purchases. Facing mortgage rates exceeding 6% and record-high property prices, many millennials turned to family or friends for assistance, particularly for down payments. Among those aged 26 to 34, one-quarter reported receiving such support.

Down payment patterns further underscore generational disparities. Boomers committed an average of 28% or more toward down payments when utilizing financing, whereas younger millennials managed just 10%, and older millennials averaged 14%. These figures align with broader trends indicating that older millennials tend to purchase larger, newer homes compared to their younger counterparts. Jessica Lautz, deputy chief economist at NAR, noted that this reflects how accumulated equity enables repeat purchases among older generations, while younger buyers grapple with affordability issues.

First-time buyers constituted merely 24% of total purchasers, reflecting a decline from 32% the previous year. Younger millennials represent the largest group within this segment. Meanwhile, Gen Z, comprising individuals up to age 25, accounted for only 3% of homebuyers, with single women forming a significant portion of this cohort. Gen X, aged between 45 and 59, represented 24% of buyers, maintaining consistent market participation year-over-year.

Baby boomers not only dominate as buyers but also as sellers, making up over half of those who sold properties in the last year. On average, they spent over a decade in their homes before selling, leveraging the equity accrued over time. This highlights their strategic advantage in navigating the housing market. As these dynamics continue to evolve, they paint a vivid picture of shifting priorities and capabilities across different generations in the pursuit of homeownership.