The latest National Association of REALTORS® Generational Trends Report highlights a housing market that is increasingly divided—not by demand, but by access.
At the center of the story:
Baby Boomers are dominating the market, while first-time buyers are being squeezed out at historic levels.
A Market Defined by Who Can Buy—Not Who Wants To
Baby Boomers now make up 42% of all home buyers, maintaining their position as the largest generational group in the market.
At the same time, first-time buyers account for just 21% of purchases, the lowest share ever recorded since tracking began in 1981.
This is more than a statistic—it’s a signal.
Today’s housing market is increasingly shaped by:
- Equity-rich repeat buyers who can leverage existing assets
- Younger buyers facing systemic barriers to entry
As NAR notes, the market is “sharply divided between homeowners with equity and first-time buyers trying to break in.”
Millennials Are Splitting—Not Leading
Millennials, long expected to dominate homebuying, now represent 26% of buyers, down from prior years.
But the more important story is what’s happening within the generation:
- Older Millennials are thriving
- Highest incomes among buyers (~$132K)
- Purchasing larger homes
- Transitioning into move-up buyers
- Younger Millennials are struggling
- Still represent the largest share of first-time buyers
- But declining participation year-over-year
This split reinforces a broader trend:
Homeownership is increasingly dependent on timing and existing assets—not just income.
The First-Time Buyer Is Disappearing
First-time buyers—traditionally the foundation of a healthy housing market—are facing unprecedented challenges:
- Limited housing inventory
- Rising home prices
- Difficulty saving for down payments
- Increased competition from cash buyers
The result?
A shrinking pipeline of new homeowners and delayed entry into wealth-building through real estate.
In fact, the typical first-time buyer is now older than ever, reflecting how long it takes to overcome today’s barriers.
Why Boomers Are Driving the Market
Boomers’ dominance isn’t about income—it’s about equity and flexibility.
After decades of homeownership, many are:
- Leveraging accumulated equity to purchase again
- Downsizing or relocating for lifestyle reasons
- Buying closer to family, healthcare, or retirement destinations
This creates a powerful advantage in today’s market—especially when competing against first-time buyers without equity.
The Bigger Picture: A Constrained Housing Market
Taken together, these trends point to a clear reality:
This is what a constrained housing market looks like:
- Too few homes available
- Prices outpacing incomes
- Fewer entry points for new buyers
And importantly—this is not a demand problem.
It is a supply and access problem.
The Role of REALTORS® Has Never Been More Important
Even in a challenging market, consumers continue to rely on trusted guidance:
- 88% of buyers used a real estate agent
- 91% would use their agent again or recommend them
As the market becomes more complex, REALTORS® remain essential in helping buyers and sellers navigate affordability, competition, and opportunity.
What This Means for Policy
These trends reinforce a critical takeaway:
Housing policy decisions directly shape who can access homeownership.
If we want to:
- Expand homeownership opportunities
- Support first-time buyers
- Strengthen long-term housing stability
We must address:
- Housing supply constraints
- Barriers to entry for new buyers
- Policies that impact affordability at the local and regional level
Bottom Line
The 2026 housing market tells a clear story:
Homeownership is still in demand—but increasingly out of reach for those trying to enter for the first time.
And that’s exactly why advocacy—and smart housing policy—matters now more than ever.