Baby boomers are now buying 42% of U.S. homes, outpacing millennials at 29%.

From Yahoo Finance: 2025-04-19 11:16:00

Millennials are losing ground in the housing market to baby boomers, with boomers making up 42% of home sales compared to millennials’ 29%. Low inventory, high prices, and interest rates hinder millennials’ ability to save for a down payment, while boomers are able to pay in cash.

The shift towards high-priced homes is pricing out entry-level buyers, leading to record-high down payments. Boomers are buying homes with cash, bypassing financing. The mortgage industry is suffering as many buyers opt out of loans. Gen Z is slowly entering the market with lower incomes.

Boomers are buying smaller homes for cash and transitioning into senior housing as they approach 80. By 2030, 80-year-olds will increase by 4 million, driving demand for senior housing. NIC MAP predicts 560,000 new units are needed. The industry must develop twice as many units annually to meet demands.

By 2030, older Americans are expected to outnumber children for the first time in U.S. history. Affordability issues may continue to dominate the housing market unless interest rates drop and inventory rises. Boomers currently hold the majority of home purchases, but a shift could occur with changing market conditions.

Read more: Where Are the Millennials? Boomers Now Buy 42% of U.S. Homes With No Change In Sight