Baby Boomers Once Again Overtake Millennials in Home Buying

Back in October of 2023 I wrote a blog post titled Baby Boomer Homebuyers Outpace Millennial Buyers in 2022 and 2023. And they're (we're) at it again.

Navigating today’s housing market isn’t easy, but one group seems to be handling it better than the rest: adults aged 60 to 78. While rising prices and high mortgage rates have left many younger buyers struggling, baby boomers are finding ways to succeed—and their strategies might surprise you.

High interest rates, limited inventory, and escalating prices have created obstacles that affect each generation differently. Understanding these generational differences isn't just academically interesting—it provides valuable insights for buyers, sellers, and the real estate professionals who serve them.

In this post, I'll explore how each generation is navigating the housing market, what they expect from their real estate agents, and the unique challenges and opportunities they face. Whether you're a first-time Gen Z buyer or a Baby Boomer looking to downsize, there's something here that might help you better understand your position in today's complex market.

The housing market has always been a reflection of our society's economic health, demographic shifts, and changing preferences. As someone who's been fascinated by these trends, I've noticed something particularly interesting lately: Baby Boomers (ages 60-78) seem to be weathering the current housing market storm with remarkable resilience compared to their younger counterparts. This observation led me to dig deeper into how different generations are approaching buying and selling homes in today's challenging environment. Let’s break down what’s happening, why older Americans are adapting more easily, and what everyone can learn from their approach.

The Housing Market's Current Challenges

Before diving into generational differences, it's worth acknowledging the perfect storm that's been brewing in the housing market. Interest rates have climbed significantly from their historic lows during the pandemic. While not exceptionally high by historical standards, they represent a dramatic increase that has shocked many potential buyers who had grown accustomed to ultra-low rates. Today's higher interest rates combined with high prices, some still increasing in different areas, make house hunting a daunting challenge.

Inventory remains tight across most markets, creating competitive conditions that can still favor sellers (many areas are still seeing multiple offers on homes that are priced correctly for their location and condition) but make buying particularly challenging. Housing affordability has reached crisis levels in many areas, with home prices continuing to outpace wage growth. This trifecta of challenges—high rates, low inventory, and affordability concerns—has created a market where adaptability and financial strength matter more than ever.

Baby Boomers: The Resilient Generation

Baby Boomers, those born between 1946 and 1964 (now ages 60-78), appear to be navigating these turbulent waters with surprising ease. There are several reasons for this resilience. It’s not just luck and I think we all know why Boomers have the upper hand. Many Boomers purchased their homes decades ago at much lower prices and have built substantial equity. Some have paid off their mortgages entirely, insulating them from interest rate fluctuations that have younger generations hitting the panic button, allowing them to make larger down payments or buy new properties outright, especially if they're downsizing. They’re also less likely to need a mortgage—a major perk when interest rates are near 7%.

When Boomers do decide to sell and purchase another property, they're often doing so from a position of financial strength. They can afford to wait for the right opportunity or make cash offers that bypass mortgage challenges altogether. According to the NAR report, Baby Boomers were the most likely age group to purchase newly built homes (about 30%), primarily driven by their desire to avoid renovations and repairs and their ability to customize design features.

I find it particularly interesting that buyers over 60 were the most likely to purchase homes the furthest distance from their previous residence—moving a median of 35 miles away. This suggests a willingness to relocate for lifestyle reasons rather than being tied to specific job markets, unlike their younger counterparts, who often need to stay near employment centers.

Nearly 20% of buyers over 60 purchased senior-related housing, which typically includes amenities and services targeted to older adults. While detached single-family homes remained most popular, a significant number also opted for duplexes, condos, or townhouses—indicating a trend toward more manageable living spaces.

When working with real estate agents, Baby Boomers tend to value experience and market knowledge above all else. They expect their agents to provide guidance on pricing their homes competitively and marketing them effectively. Having lived through multiple housing cycles, they often approach transactions with a longer-term perspective and more patience than younger buyers and sellers.

But it’s not all smooth sailing. Boomers still face challenges like limited housing inventory and competition from cash-rich investors. They might have equity in their homes, but many are now on a fixed income. So how are they winning? They’re working smarter with real estate agents.

Generation X: The Sandwich Generation

Generation X, aged 45 to 59, finds themselves in a unique position. The NAR report reveals that Gen Xers have the highest household incomes of any generation at $130,000 in 2023. Yet despite this financial advantage, they face distinctive challenges that stem from their position in the life cycle.

Gen X has been dubbed the "sandwich generation" because many are simultaneously caring for aging parents and supporting children—some of whom are adults who haven't yet achieved financial independence. This responsibility is reflected in their housing choices: 21% of Gen Xers purchased multigenerational homes to accommodate multiple age groups under one roof.

The financial pressures on Gen X can be substantial despite their higher incomes. Many reached their prime earning years during the Great Recession, which affected their wealth accumulation. Now, as they approach retirement age, they're balancing their own housing needs with the responsibility of caring for family members across generations.

When working with real estate agents, Gen Xers typically value efficiency and expertise. They're often time-pressed due to family and career obligations, so they appreciate agents who can streamline the process while still providing detailed information about schools, neighborhoods, and investment potential. They expect their agents to understand the unique requirements of multigenerational living, including features like in-law suites, multiple master bedrooms, or homes with potential for adding accessory dwelling units.

Millennials: The First-Time Buyer Generation

Millennials, now spanning from 26 to 44 years old, make up the largest segment of home buyers in today's market. The NAR data shows they comprise the highest share of first-time home buyers, with 71% of younger millennials (26-34) and 36% of older millennials (35-44) purchasing their first homes.

This generation has faced unique challenges. Many graduated into the Great Recession, accumulated substantial student debt, and now face a housing market with prices significantly higher than when their parents bought their first homes. Despite these obstacles, they remain determined to achieve homeownership.

Older millennials, with a median household income of $127,500, are approaching their prime earning years and often have growing families driving their housing decisions. Younger millennials, meanwhile, are still establishing their careers and may be purchasing their first homes with less financial cushion.

What I find particularly notable is how millennials are piecing together down payments. Twenty-seven percent of younger millennials and 13% of older millennials cited gifts from relatives or friends as sources for their down payments. This intergenerational wealth transfer is becoming an increasingly important factor in homeownership attainment.

Millennials expect their real estate agents to be tech-savvy and responsive. Having grown up with technology, they appreciate virtual tours, electronic document signing, and agents who communicate promptly via text or email. They also value education about the home buying process, as many are navigating it for the first time and need guidance on everything from mortgage pre-approval to home inspections.

Gen Z: The Emerging Buyers

Although still a relatively small portion of the market, Gen Z (ages 18-25) is beginning to make its presence felt in real estate. These young buyers are entering the market with the lowest household incomes and are more likely to be single than other buyers.

One of the most fascinating trends is the high percentage of single female buyers in this age group. According to the NAR report, 30% of Gen Z buyers were single females, compared to just 8% of single males across all age groups. This gender disparity reflects broader social and economic trends, including women's increasing economic independence and educational attainment.

Gen Z buyers face significant challenges, including rising student debt, entry-level salaries, and a housing market that has grown increasingly unaffordable. As a result, they're more likely to make compromises on their purchases than older generations, whether on price, condition, size, or location.

When working with real estate agents, Gen Z buyers value authenticity and digital fluency. Having grown up as digital natives, they expect seamless online experiences but also crave genuine guidance as they navigate what is likely the largest financial transaction of their lives so far. Agents who can provide educational content through social media platforms and help them understand the long-term implications of their housing choices tend to be most successful with this generation.

What All Generations Want From Their Agents

Whether buying or selling, a good agent is crucial. Here’s what different age groups prioritize:

Baby Boomers (60–78):

- Pricing expertise: With decades of market ups and downs, boomers value agents who can accurately price homes in volatile conditions.
- Low-maintenance options: 30% of boomers opt for newly built homes to avoid renovations. Agents help them find move-in-ready properties or customize builds.
- Relocation support: Boomers move the farthest (median 35 miles), often seeking warmer climates or quieter communities. Although I'm not retired, my husand and my goal was to move from the southwest suburbs of Chicago, Illinois to Arizona. We already had a second home in Scottsdale for many years before we moved here full-time.

Gen X (45–59):

- Multigenerational solutions: 21% of Gen X buyers purchase homes to accommodate adult children or aging parents. Agents help them balance cost savings and family needs[1][4].
- High-income navigation: With the highest median household income ($130K), Gen X relies on agents to maximize their budget in competitive markets.

I keep thinking my oldest son is a millennial, but this tells me he's Gen X. My youngest son is the millennial.

Millennials (26–44):

- First-time buyer guidance: 71% of younger millennials are first-time buyers. They need agents who can explain loan programs and down payment assistance.
- Compromise coaching: Many settle for smaller homes or fixer-uppers. Agents help them identify “good enough” properties.

Gen Z (18–25):

- Entry-level opportunities: With lower incomes, Gen Z buyers depend on agents to find starter homes or income-generating properties (e.g., condos).
- Single-buyer support: 30% of Gen Z buyers are single females—the highest share of any generation.

The Multigenerational Home Boom

Gen X isn’t just buying homes—they’re redefining them. 1 in 5 Gen X purchases are multigenerational, driven by:
- Cost savings (26% cite this reason)
- Aging parent care (24%)
- Adult children moving back home (19%) - this might redefine living situations, but not redefine home purchasing. Of course, if adult children with their own family (spouse and kids) move back home, it might require the parents to buy a bigger house. I would guess that in most situations they just deal with the current home.

Agents help these “sandwich generation” buyers find properties with separate living spaces, accessibility features, and proximity to healthcare.

First-Time Buyers: Older and Wealthier Than Ever

The average first-time buyer is now 38 years old—up from 35 just a year ago. Why?
- Sky-high prices: A typical U.S. home now costs over $400,000. That's close to the price of a decent condominium in Scottsdale, although you can find them priced less.
- Student debt: 45% of millennials delay homeownership due to loans.
- Tougher competition: All-cash offers dominate many markets.

Surprisingly, 27% of younger millennials get down payment help from family. Agents and lenders can play matchmaker, connecting buyers with state/local assistance programs.

The Rise of Single Female Buyers

Single women now make up 20% of buyers—more than double the share of single men. Gen Z leads this trend, with 30% of their buyers being solo females. Agents help them:
- Navigate safety concerns
- Balance affordability and location
- Leverage first-time buyer programs

Senior Housing: Not Just Retirement Communities

20% of buyers over 60 opt for senior-related housing, but most skip traditional retirement communities. Instead, they’re choosing:
1. Single-family homes (58%)
2. Duplexes/condos (18%)
3. Townhouses (9%)

Agents focus on accessibility (e.g., no-step entries), healthcare access, and social opportunities.

How Agents Help Sellers of All Ages

Want to sell quickly and profitably? Top agents provide:
1. Competitive pricing: Uses local comps and market trends and knows how to create a true Comparative Market Analysis.
2. Strategic marketing: Professional photos, including drone shots, social media, and other advertising.
3. Timeline planning: Aligns sales with life events (retirement, school years).
4. Home prep tips: for example, an inexpensive kitchen refresh vs. a $50K renovation. I give free staging advice (I am not a professional stager but my advice has helped many sellers get top dollar (sometimes creating a new high price for the area). In many cases, they didn't have to spend much, if any, money.

The Takeaway: Adaptability Wins

While no generation has it easy, today’s successful buyers and sellers share three traits:
1. Flexibility (on location, home size, or condition).
2. Financial creativity (gifted down payments, multigenerational cost-sharing).
3. Strong agent partnerships.

As NAR’s Jessica Lautz notes, “The market rewards those who work with professionals who understand both numbers and human needs”. Whether you’re 25 or 75, that’s a lesson worth remembering.

I love working with first-time buyers, senior buyers and sellers and anyone in between. Give me a call if you're thinking of buying and/or selling a home in the Greater Phoenix area - Judy Orr, 480-906-1500.