Baby boomers dominated both sides of the housing market in the past year, while first-time buyers shrank to their smallest share on record, according to the National Association of Realtors’ 2026 Home Buyers and Sellers Generational Trends report released Tuesday.
First-time buyers made up just 21 percent of all home purchases, down from 24 percent the prior year and the lowest share since NAR began collecting the data in 1981. Baby boomers, meanwhile, accounted for 42 percent of all buyers and 55 percent of all sellers.
Jessica Lautz
“Historically, before the Great Recession, 40 percent of homebuyers were first-time homebuyers, while today the share is nearly half,” NAR Deputy Chief Economist Jessica Lautz told Inman. “The housing market is missing starter homes for entry-level buyers, and more smaller, affordable homes are needed to bring first-time homebuyers back in.”
A market divided by equity
The report paints a picture of a housing market increasingly split between those with accumulated equity and those still working toward a first purchase.
Baby boomers, who have built substantial equity through years of homeownership, are navigating the market more easily, while younger buyers, by contrast, face steeper hurdles.
“Baby boomers are often able to purchase what they want with relative ease compared to cash-strapped younger buyers,” Lautz said. “Younger buyers are scrimping and saving for a down payment and typically can’t afford a large down payment or to make an all-cash purchase.”
Among millennials, that divide is sharpest. Older millennials — those born between 1980 and 1989 — posted the highest median household income of any generation at $132,700, bought the largest homes at a median 2,100 square feet and were far less likely to be first-time buyers than their younger counterparts. Younger millennials saw their first-time buyer share fall from 71 percent to 60 percent in a single year.
“Older millennials who were able to purchase a home are now showing the ability to make housing moves, similar to past generations, while younger millennials continue to struggle to enter the market as first-time buyers,” Lautz said. “This older millennial cohort is entering their peak earning years and may be starting families, driving the need for larger homes.”
Overall, millennials made up 26 percent of buyers, down from 29 percent the prior year.
Gen Z redefines who buys
Gen Z remained a small slice of the market at 4 percent of all buyers, but the cohort’s profile challenges traditional assumptions about who purchases a home and when. Fifty-five percent of Gen Z buyers were first-time purchasers. Thirty-five percent were single females, the highest share among all generations, and 17 percent were unmarried couples, also the highest of any group.
“These young buyers are at a stage in their life where, before making long-term relationship decisions, they’re viewing homeownership as a source of stability and a strong financial investment for their future,” Lautz said. “Marriage is not a requirement for homeownership, and many Gen Z buyers are embracing the independence of homeownership on their own.”
Gen X carries the multigenerational load
Fourteen percent of all buyers purchased a multigenerational home, down from 17 percent the prior year. Gen X led all generations at 19 percent, a reflection of where that cohort sits in life.
“Gen Xers are the current ‘sandwich generation,’ often balancing both aging parents while also supporting young adults who have moved back home,” Lautz said. “As all generations come under one roof, it’s driven by a mix of factors, including cost savings, housing affordability, and caregiving needs for both elder care and childcare.”
Lautz said multigenerational buying appears to be a lasting trend, regardless of near-term economic shifts.
Agents remain central to transactions
Despite shifting generational dynamics, reliance on real estate agents remained high across all groups. Eighty-eight percent of buyers purchased through an agent, and 91 percent said they would use their agent again or recommend them to others. On the selling side, 91 percent of sellers worked with an agent, and homes typically sold for a median 99 percent of the final list price.
Baby boomers also led on the seller side, with older boomers typically staying in their homes 15 years before selling. Younger millennials sold after a median five years, while the overall seller tenure was 11 years.
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