Baby Boomers Dominate the Market as First-Time Buyers Hit Historic Low

The latest housing data is reinforcing what many real estate professionals are already experiencing in the field. Today’s market is increasingly driven by equity-rich, repeat buyers, while first-time purchasers continue to face significant barriers to entry.

According to new research from the National Association of REALTORS®, Baby Boomers now make up the largest share of home buyers at 42%, while first-time buyers have dropped to just 21% of all purchases, the lowest level recorded since tracking began in 1981. 

A Market Defined by Equity

For members of the Hudson Gateway Association of REALTORS®, this shift highlights a clear reality. The market is being shaped by those who already own property and can leverage equity to move, rather than those trying to enter for the first time.

Baby Boomers are not only leading on the buying side but also dominate selling activity, accounting for 55% of all sellers. Their ability to tap into accumulated home equity is giving them a distinct advantage in today’s competitive and high-cost environment.

Millennials Are Evolving, Not Disappearing

While Millennials have lost overall market share, their role is becoming more nuanced.

Older Millennials are increasingly acting as move-up buyers, often using equity from previous homes. This group now has the highest median household income of any generation at $132,700 and is purchasing larger homes, with a median size of 2,100 square feet. 

Younger Millennials, however, continue to face affordability challenges, with a notable decline in first-time buying activity. This divide within the same generation is becoming more pronounced and is important for agents to recognize when advising clients.

First-Time Buyers Face Mounting Challenges

The drop in first-time buyers is one of the most significant takeaways from the report.

Only about one in five buyers is entering the market for the first time. Rising home prices, limited inventory, and affordability constraints are making it increasingly difficult for younger households to purchase their first home.

For REALTORS®, this underscores the need for:

• Stronger education and guidance for first-time buyers
• Creative approaches to financing and home search strategies
• Patience in longer buying cycles 

Gen Z Begins to Enter the Market

Although still a small segment, Gen Z buyers are beginning to make their presence known, accounting for 4% of all buyers. 

Notably, this group is already reshaping traditional expectations:

• A higher share of single female buyers than any other generation
• More unmarried couples are purchasing homes together 

This signals a shift in how and why younger buyers are entering the market, with homeownership driven more by personal goals than traditional life milestones.

Multigenerational Living Shifts

Multigenerational home purchases have declined slightly to 14% of all transactions, though they remain an important segment of the market. 

These purchases are often motivated by:

• Cost savings 
• Care for aging parents 
• Adult children moving back home 

Understanding these motivations can help agents better position properties and guide family-based decision-making.

The Continued Value of REALTORS®

Despite changing market dynamics, one trend remains consistent. Consumers continue to rely heavily on real estate professionals.

• 88% of buyers purchased their home through an agent 
• 91% of sellers worked with an agent 
• The vast majority said they would use their agent again or recommend them 

In a more complex and competitive environment, the role of the REALTOR® is not diminishing. It is becoming more essential.

What This Means for HGAR Members

This data reinforces several key strategies for today’s market:

• Focus on move-up and downsizing opportunities driven by equity
• Be prepared to guide first-time buyers through longer and more challenging journeys
• Understand generational differences and tailor messaging accordingly
• Position yourself as a trusted advisor in an increasingly complex transaction environment 

The Bottom Line

The housing market is not slowing. It is shifting.

As affordability challenges persist and inventory remains tight, those with equity are driving activity, while first-time buyers continue to navigate a difficult path forward. For REALTORS®, success will depend on understanding these dynamics and adapting strategies to meet clients where they are.

HGAR will continue to share insights like these to help members stay informed, competitive, and positioned for success in a changing market.