Generational Trends in Home Buying: What REALTORS® Need to Know in 2025

This year, we’ve seen a significant shift in home-buying dynamics in the United States. As a REALTOR^®, understanding generational motivations is key to serving clients effectively — and capitalizing on market momentum.

The latest data from the National Association of REALTORS^® reveals a major change — baby boomers have reclaimed their spot as the largest share of homebuyers, surpassing millennials for the first time in years.

Here’s what you need to know about today’s generational dynamics, along with what buyers are looking for in their next home.

Who’s Buying? Generational Market Share in 2025.

Generation	Age Range	% of Home Buyers

Baby Boomers	60–78	42%
Millennials	27–45	29%
Generation X	45–59	24%
Generation Z	14–25	3%

Key trends by generation

Baby boomers are back,now dominating 42% of the market.

• Motivated by a desire to be closer to family and friends, as well as to meet retirement needs.
• Many have built significant equity, enabling a large share of buyers to purchase homes with all cash. Half of older boomers and 40% of younger boomers are bypassing financing altogether.
• Less sensitive to high mortgage rates due to their financial position.
• Dominate the selling side as well, representing 53% of home sellers.

Millennials have dropped to 29%, a notable decrease from 38% just a year ago.

• More reliant on financing and family support for down payments.
• First-time homebuyers are decreasing, but younger millennials lead in this category.
• Older millennials are more often repeat buyers, seeking larger, newer homes.

Generation X accounts for 24% of buyers.

• Highest median household income among buyers ($130k), often purchasing multigenerational homes to accommodate both aging parents and adult children.

Generation Z remains a niche segment, at 3%.

• Smallest segment but notable for the highest percentage of single-female buyers, many purchasing older homes.

The rise of multigenerational living

Multigenerational home buying is increasing, especially among Generation X, but also boomers accommodating adult children or elderly parents. Homes with flexible layouts and separate living spaces are ideal for these situations.

What baby boomers are looking for in a home

Baby boomers have distinct preferences that real estate agents should be aware of. And this age group appreciates in-person tours, printed materials, and clear, consultative service.

Smaller, relationship-centric living

• Boomers often choose homes to be closer to friends and family or to accommodate retirement lifestyles.
• Preferences trend toward smaller homes, especially among older boomers.

Home type preferences

• Single-level living: Many are looking for homes without stairs. When there is more than one level, a bedroom and full bath on the main level is highly desirable.
• Accessibility and “aging-in-place” features: Universal design elements that allow for comfortable, long-term living are important.
• Low-maintenance lifestyles: Many choose townhomes, condos, or smaller single–family homes, especially single-female boomers, who often favor security and manageable upkeep.
• Functional spaces: A dedicated laundry room tops the list, with 94% rating it as essential.
• Outdoor living: Patios are popular, with 89% of boomers seeking this feature.
• Comfort and storage: Air conditioning, ceiling fans (88%), and garage storage (88%) are also high priorities.

What they don’t want

• Elevators, wine cellars, daycare centers, two-story family rooms, and plant-covered roofs are among the least desirable features for boomers.

Cash purchases

• About 50% of older boomers and 40% of younger boomers purchase homes outright with cash — shifting mortgage-based strategies.
• Their financial strength and flexibility often speeds up negotiations and closings.

Location matters

• Younger boomers often opt for small towns or rural settings. Older boomers prefer suburbs or subdivisions.
• Factors such as healthcare access, community amenities, and low-maintenance living are top priorities.

Final Thoughts

A generational shift in home buying is reshaping the market. REALTORS^® who understand each generation’s motivations and tailor their approach to meet those needs will find success in 2025 and onward.