Baby Boomers Lead the Housing Market as First-Time Buyers Face Growing Challenges

The U.S. housing market is continuing to shift, and the latest data shows a clear trend: Baby Boomers remain the most active force in both buying and selling homes, while first-time buyers are finding it harder than ever to get into the market.

According to the National Association of Realtors' 2026 Home Buyers and Sellers Generational Trends report, first-time buyers made up just 21% of all home purchases over the past year. That is down from 24% in the previous survey and marks the lowest share recorded since 1981. At the same time, Baby Boomers accounted for 42% of all home buyers and 55% of all home sellers, underscoring how much influence they currently have in the housing market.

One of the biggest drivers behind this shift is the growing divide between homeowners who already have equity and buyers who are trying to purchase their first home. Many repeat buyers are using proceeds from previous home sales to move more easily within the market, while first-time buyers are dealing with affordability concerns, limited inventory, and tougher competition.

Across all generations, the buyer breakdown shows how broad the gap has become:

Millennials still make up a significant portion of the market, but the report highlights a growing split within that generation. Older Millennials are increasingly acting as move-up buyers, supported by higher incomes and home equity. They posted the highest median household income of any generation at $132,700 and purchased the largest homes, with a median size of 2,100 square feet. Only 33% of older Millennials were first-time buyers, compared with 60% of younger Millennials, showing how sharply the homebuying experience can differ even within the same generation.

Gen Z buyers remain a small but notable segment of the market. They represented just 4% of all buyers, but their buying patterns stand out. Among Gen Z buyers, 35% were single women, the highest share among any generation, while 17% were unmarried couples. These numbers suggest that younger buyers are entering the market in ways that do not always match traditional assumptions about who buys a home.

The report also found that multigenerational home purchases declined, making up 14% of all purchases, down from 17% the year before. Even with that decline, multigenerational living remains an important option for many households, often driven by the need to care for aging parents, reduce costs, or accommodate adult children returning home.

On the selling side, homeowners are generally staying in their homes longer before listing them. Sellers lived in their homes for a median of 11 years before selling, although that varied by age group. Younger Millennials typically sold after five years, while older Baby Boomers stayed in their homes for around 15 years before moving. For many Boomers, selling is tied less to necessity and more to lifestyle choices such as downsizing, relocating closer to family and friends, or retiring.

The data also reinforces the continued importance of working with a real estate professional. Eighty-eight percent of buyers purchased their home through an agent, and 91% of sellers worked with one. Satisfaction levels remained high, with 91% of buyers saying they would use their agent again or recommend them to others.

Pricing trends were also strong for sellers. Homes sold for a median of 99% of final list price, and younger Millennial sellers performed especially well. Among that group, 19% sold their homes for 101% to 110% of list price, while 11% sold for more than 110% of list price.

Overall, the latest generational data paints a housing market where equity-rich homeowners have a clear advantage, while younger and first-time buyers continue to face steep hurdles. For buyers and sellers alike, understanding these generational trends can provide valuable insight into today's market and help shape smarter real estate decisions.