While baby boomers remained a dominant force in the housing market last year, first-time buyers fell to their lowest share on record, according to the National Association of Realtors’ 2026 Home Buyer and Sellers Generational Trends Report.
Baby boomers dominated both sides of the housing market over the past year, but first-time buyers shrank to their lowest share on record, according to the 2026 Home Buyer and Sellers Generational Trends Report released Tuesday by the National Association of Realtors.
First-time buyers accounted for just 21% of all home purchases, down from 24% a year ago and the lowest percentage since NAR began collecting data in 1981. Meanwhile, baby boomers accounted for 42% of all buyers and 55% of all sellers.
Jessica Lautz
“Historically, before the Great Recession, 40% of homebuyers were first-time homebuyers; now that number is almost half,” Jessica Lautz, principal deputy economist at NAR, told Inman. “The housing market lacks starter homes for entry-level buyers, and we need smaller, more affordable homes to attract first-time homebuyers back.”
Market divided by stocks
The report paints a picture of a housing market increasingly divided between those with accumulated capital and those still working towards their first purchase.
Baby boomers, who have built up substantial equity through years of homeownership, are able to more easily navigate the market, while younger buyers, by contrast, face higher hurdles.
“Baby boomers often find it relatively easy to buy what they want compared to cash-strapped younger buyers,” says Lautz. “Younger buyers are saving up for a down payment and usually can’t afford a large down payment or an all-cash purchase.”
The divide is most acute among millennials. Older Millennials born between 1980 and 1989 had the highest median household income of any generation at $132,700, purchased a home with a median size of 2,100 square feet, and were far less likely than younger generations to be first-time buyers. Younger Millennials saw their share of first-time buyers drop from 71% to 60% in one year.
“Older Millennials who have been able to purchase a home have shown the same ability to move into housing as past generations, but younger Millennials continue to struggle to enter the market as first-time buyers,” Lautz said. “This older generation of millennials is entering their prime earning years and potentially starting families, increasing the need for larger homes.”
Overall, Millennials made up 26% of buyers, down from 29% a year ago.
Gen Z is redefining the buyer
Although Gen Z remains a small portion of the market at 4% of all buyers, their profile challenges traditional assumptions about who buys homes and when. 55% of Gen Z buyers were first-time buyers. The percentage of single women was 35%, the highest among all generations, and the percentage of unmarried couples was 17%, also the highest among all generations.
“These young buyers are at a stage in life where they view homeownership as a source of stability and a strong financial investment in their future before making decisions about long-term relationships,” Lautz said. “Marriage is not a prerequisite for homeownership. Many Gen Z buyers are embracing the independence of homeownership on their own.”
Generation X carries the burden of multiple generations
14% of all buyers purchased multi-generational homes, down from 17% a year ago. Gen X leads all generations at 19 percent, reflecting where this generation is in life.
“Gen “A confluence of factors is driving this, including cost savings, housing affordability, and long-term care needs for both elder care and childcare as all generations come together under one roof.”
Lautz said multigenerational purchasing appears to be a permanent trend, regardless of short-term economic changes.
Agents remain at the center of transactions
Despite changing generational dynamics, dependence on real estate agents remained high across all groups. 88% of buyers purchased through an agent, and 91% said they would use an agent again or recommend them to others. On the sales side, 91 percent of sellers worked with agents, and homes typically sold for a median of 99 percent of final list price.
Baby boomers are also in the driver’s seat on the seller side, with older boomers typically living in their homes for 15 years before selling. Younger Millennials sold for a median of 5 years, while overall seller tenure was 11 years.
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