Baby boomers infuriate Gen Z and Millennials with with controversial homebuying tactic

Baby boomers now make up the largest group of home buyers, locking out younger people with all-cash offers and bigger down payments.

With decades of savings from low mortgage rates, boomers have overtaken Millennials, Gen X, and Gen Z in home purchases. 

Millennials (ages 29 to 44) now make up just 29 percent of buyers — down from 38 percent a year ago. Gen X buyers remain steady at 24 percent, while Gen Z account for three in every 100 home purchases.

Overall, the combined share of younger boomers (ages 60–69) and older boomers (ages 70–78) rose to 42 percent of all home buyers in the past year, according to a report by the National Association of Realtors.

‘In a plot twist, baby boomers have overtaken millennials – the largest U.S. population – to become the top generation of home buyers,’ said Jessica Lautz, NAR deputy chief economist and vice president of research.

‘What’s striking is that boomers 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 percent of buyers 44 years and younger needed a mortgage, and many turned to relatives for help. 

The report revealed that just 24 percent of recent home buyers were purchasing for the first time, a significant drop from 32 percent last year. First-time buying was most common among younger millennials at 71 percent, 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 adds.

‘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 home buyers continued to lead all generations with a median household income of $130,000, followed by older millennials at $127,500.

Seventeen percent of all home buyers purchased a multigenerational home – up from 14 percent last year. Generation X led the way, with 21 percent choosing multigenerational living, followed by younger boomers at 15 percent.

‘Gen Xers are today’s sandwich generation,’ said Lautz.

‘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.’

Meanwhile, Gen Z – though still a small segment of the market with three percent of all buyers – had the highest share of single-female home buyers at 30 percent, 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.

And Gen X is set to get even wealthier over the next decade.

They will be the biggest beneficiaries of the $84 trillion set to be inherited from their parents and grandparents.

'Much is often made in the media of millennial and Generation Z heirs but, in fact, Generation X will be first in line to inherit from their wealthy parent(s),' one report reads. 

As for Boomers, they got here after economic restructuring in the wake of the 2008 financial crisis benefited them because most already owned homes before the crash.

Nearly two decades of rock-bottom interest rates also helped.