Millennials vs. Boomers in Today’s Real Estate Market – Who’s Leading?

In 2025, the U.S. housing market tells a compelling generational story: as Baby Boomers rise to dominance, Millennials struggle to keep pace. Behind the headlines lies a clash between equity-rich sellers and aspiring first-time buyers navigating affordability challenges.

1. Boomers Reclaim Market Dominance

According to the 2025 NAR Home Buyers and Sellers Generational Trends Report, Baby Boomers (ages 60–78) now represent 42% of home buyers, overtaking Millennials, who slipped to 29%.

Moreover, Boomers are major sellers too—accounting for 53% of listings—leveraging built-up equity to fuel moves, often funding purchases with cash (Washington Post).

2. Millennials: Financing Hurdles and Slipping Share

Millennials continue to depend heavily on mortgages, with over 90% financing their purchases, unlike Boomers, many of whom pay in cash (Newsweek).

Their buying share dropped notably—from around 38% to 29%—as affordability issues and rising mortgage rates squeeze younger buyers (Washington Post).

3. Wealth Transfer = Opportunity or Burden?

Boomers own an estimated 41% of U.S. real estate, valued at nearly $20 trillion. As they begin passing that wealth to Millennials, inheritance brings opportunities—and responsibilities. The so-called “silver tsunami” often means older homes needing renovation, complex tax implications, and emotional hurdles (Business Insider).

4. Shifting Bargaining Power – Buyer-Friendly Signs

Relief may be on the horizon. Redfin data shows that home prices are cooling, with year-over-year declines in many metros. Buyers are gaining bargaining power, with more listings and concessions available—covering repairs, rate buydowns, and closing costs.

5. Generational Preferences & Real Estate Strategy

Boomers often downsize, favoring low-maintenance homes closer to family—shaping their buying and selling behavior (HAR.com).

Millennials, in contrast, prioritize flexibility, technology, and sustainability, with growing interest in alternative ownership models like rent-to-own and co-housing (Realty Times).

Conclusion: Who’s Driving the Market?

For now, Boomers are firmly in the driver’s seat—empowered by equity, cash, and a strong presence in both buying and selling. Millennials, while still significant players, face affordability hurdles and market headwinds that limit their potential. But as prices soften and inventory rises, the tide may slowly turn in Millennials’ favor.

Compliments of Virtual Results