|
Getting your Trinity Audio player ready...
|
| Each week, the Silicon Valley Association of Realtors (SILVAR) shares local housing data, sales trends, expert insights and other real estate-related topics. This week, the association shares data from the National Association of Realtors’ recently released “Home Buyers and Sellers Generational Trends” report. |
Homebuyers are getting older – or at least that’s the finding of a new study showing that baby boomers now make up the largest generational group of recent homebuyers nationwide.
The National Association of Realtors’ newly released 2025 Home Buyers and Sellers Generational Trends report, which examines the similarities and differences among recent homebuyers and sellers across generations, found that 42% of all homebuyers over the past year were boomers (those born roughly between 1946 and 1964 and currently ages 61-79). Millennials (those born roughly between 1981 and 1996 and currently ages 29-44) dropped to 29% of all buyers – down notably from 38% a year ago, according to the report. Generation X buyers (those born roughly between 1965 and 1980 and currently ages 45–59) held steady at 24%.
“In a plot twist, baby boomers have overtaken millennials – the largest U.S. population – to become the top generation of homebuyers,” said Jessica Lautz, the association’s deputy chief economist and vice president of research. “What’s striking is that half of older boomers (1946-1954) and 2-out-of-5 younger boomers (1955-1964) are purchasing homes entirely with cash, bypassing financing altogether.”
While older buyers were more likely to pay cash, younger generations were much more likely to rely on financing and family support. More than 90% of buyers 44 years and younger financed their home purchase. Twenty-seven percent of younger millennials (ages 26-34) and 13% of older millennials (ages 35-44) cited a gift from a relative or friend as one of the sources for their down payment.
On the Midpeninsula, a recent study shows that cash transactions are driven primarily by price point, rather than age. Roughly two-thirds of all sales for Peninsula homes priced between $2 million to $6 million were financed in 2024, while only about a quarter of all transactions for homes priced above $6 million to $11 million were financed, according to local sales data. For price points above that, cash is dominant, the data shows.
First-time homebuyers decline
The homebuyer report, which tracked 167,750 transactions made nationwide between July 2023 and June 2024, also shows that there are fewer first-time buyers entering the market. Only 24% of recent buyers were purchasing for the first time, a significant drop from 32% the previous year. First-time buying was most common among younger millennials (71%), while older millennials are now more likely to be repeat buyers.
“Older millennials are buying bigger and newer homes with larger down payments than their younger counterparts,” Lautz added. “This shift reflects the increasing role of equity in enabling repeat purchases, especially among older generations, while younger buyers continue to face affordability challenges.”
Generation X homebuyers continued to lead all generations with a median household income of $130,000, followed by older millennials at $127,500.
Multigenerational home sales increase
Seventeen percent of all homebuyers purchased a multigenerational home – up from 14% last year. Generation X led the way, with 21% choosing multigenerational living, followed by younger boomers at 15%.
“Gen Xers are today’s sandwich generation,” Lautz said. “They are purchasing multigenerational homes to accommodate aging relatives, children over the age of 18 and even for cost savings. While Gen X are purchasing at the highest household incomes, they may still feel the squeeze as they aim to find a home that serves everyone.”
Younger, single-female buyers on the rise
Meanwhile, Generation Z – though still a small segment of the market (3% of all buyers) – had the highest share of single-female homebuyers at 30%, and like millennials, they tend to purchase older homes compared to other age groups.
“Gen Z is slowly entering the housing market with the lowest household income and they’re more likely to be single than other buyers,” Lautz noted.
Key takeaways from the report
- On the selling side, baby boomers again dominated, accounting for 53% of all sellers.
- Across all generations, sellers stayed in their homes for a median of 10 years. Younger millennials remained more mobile, typically selling after five years, while older boomers sold after 16 years.
- 23% of older millennials were non-white buyers, representing the highest share out of all generations.
- 21% of Gen X buyers bought multigenerational housing, representing the highest share out of all generations.
- 51% of older boomers paid all cash for home purchase.
- 47% of Gen Z buyers were single.
- 42% of all homebuyers over the past year were boomers.
- Millennials dropped to 29% of all buyers – down from 38% a year ago.
- Generation X buyers held steady at 24%.
- Only 24% of recent buyers were purchasing for the first time, a significant drop from 32% last year.
- First-time buying was most common among younger millennials (71%), while older millennials are now more likely to be repeat buyers.
Silicon Valley Association of Realtors (SILVAR) is a professional trade organization representing 5,000 Realtors and affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term Realtor is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of Realtors and who subscribes to its strict Code of Ethics.
