Boomers are crushing younger homebuyers, and it's getting worse

Younger generations trying to buy homes have been bitter toward baby boomers for years.

Why? Some claim boomers have fought to stop new-home construction due to their NIMBY (not-in-my-back-yard) attitudes. Others are angry that the generation of homeowners refinanced into lower mortgage rates during the Covid pandemic and now refuse to sell.

These sorts of issues result in less inventory, which leads to higher costs for homebuyers. Costs that many younger, first-time buyers can't afford.

In some instances, the anger toward the baby boomer generation is justified. In others, it overlooks nuance. Regardless, younger would-be homebuyers are not happy with boomers.

And now first-time homebuyers have another grievance to add to their list.

Baby boomers are also the generation buying up the most homes in the current market. They make up 42% of homebuyers, according to the National Association of Realtors.

Stopping homes from being built. Refusing to sell homes. And now snatching up homes that Millennial or Gen Z buyers want. That's quite a doozy.

So, why and how are baby boomers buying more properties than any other generation?

Baby boomer buyers have 1 key advantage over younger generations

The National Association of Realtors published its 2026 Home Buyers and Sellers Generational Trends Report, where it categorized baby boomers as those aged 61-79.

The report showed that older Millennials (ages 36-45) have the highest median household income of any generation of homebuyers. But boomers still made up the largest share of buyers at 42%.

Even with Millennials earning the most of any generation, boomers continue to buy the most houses. This is one factor making it hard for first-time homebuyers to literally get their foot in the door.

Millennials may have income, but baby boomers have something even more powerful when it comes to buying a house: equity.

Related: New Redfin data shows housing market is changing fast

"Baby Boomers are at a point in life when they have the flexibility to move, often with housing equity to help purchase their next home," said Jessica Lautz, deputy chief economist at the NAR.

Many boomers bought homes decades ago — meanwhile, home values have soared.

The national average sales price of a house was $514,600 in Q1 2026, according to the Federal Reserve Bank of St. Louis. That's more than a 30% increase over the last 10 years, 40% in the last 20 years, and 68% over the past 30 years.

With that equity, baby boomers can stay in their homes — meaning they don't provide other buyers with a possible home to buy — and take out a home equity loan or line of credit.

Then, they may use the funds from the HEL or HELOC to buy a second home or investment property. The NAR study found that 6% of baby boomers owned vacation homes.

A more common way for boomers to use that equity is to make all-cash offers on houses. The NAR said 39% of younger boomers (ages 61-70) are paying in cash for their homes, and 46% of older boomers (ages 71-79) are making all-cash offers.

Paying in cash makes it more financially savvy for baby boomers to move, because they don't have to worry about taking on a mortgage loan with a higher interest rate.

It also makes it harder for younger, first-time homebuyers who haven't built up equity yet and can't afford to pay in cash. Many sellers prefer all-cash offers, so it's difficult to compete with one if you need a mortgage to afford a home.

This is one reason why the share of first-time homebuyers is at 21% — a record low.

Boomers are both downsizing and upsizing

Home equity and all-cash offers — these are financial reasons baby boomers are buying up more housing. But it's not just that they're buying more homes. It's also that they're buying more types of homes.

"Today, many Baby Boomers are embracing choice and moving to be closer to friends and family, to downsize, or to retire and enjoy a work-free lifestyle," Lautz said.

It makes sense that boomers would want to downsize as they grow older. It's easier to age in place when your house requires less cleaning and maintenance, especially if it doesn't have stairs.

This does inevitably work against first-time homebuyers, though.

When I bought my first home a few years ago, I was primarily looking at single-level houses. But it was a tough experience.

My real estate agent explained that smaller homes were often the most competitive, because they appealed to two major groups: first-time homebuyers who didn't need a lot of space and older people who wanted to downsize.

(Humble brag: I ended up successfully buying a single-level house.)

OK, Baby Boomers downsizing — we probably all expected that, right? But now Boomers are hitting us with a double whammy.

More on Buying a House:

• Why mortgage rates are spiking again and what to do
• Homebuyers lose ground as housing affordability slams shut
• Redfin reveals change in housing market, home sales

Not only are plenty of older buyers downsizing, but many are also defying expectations and buying bigger homes. This home-buying trend is particularly strong among wealthier boomers, according to The Wall Street Journal.

"Well-off boomers are increasingly upsizing their homes as they age, either buying bigger ones or financing additions to their existing properties," Rachel Louise Ensign writes for WSJ. "They are building guesthouses for family members and gourmet kitchens for entertaining, alongside such features as high-end grab bars and first-floor primary bedrooms for aging in place."

"The new demand for even bigger properties is another way boomers dominate the housing market," she continues.

Small houses, large houses — if you're a first-time homebuyer, good luck buying either one.

It's not impossible to get a house in this market, though. You just need to be strategic in finding ways to compete with all-cash offers and more competition from Baby Boomer buyers.

How to compete with boomer homebuyers

• Buy a fixer-upper. It's becoming less popular overall to buy homes that need extra TLC, according to Keller Williams. Boomers' main reason for staying away from fixer-uppers is that they don't have the time or motivation to dive into huge maintenance projects. Buying a fixer-upper could help you avoid competition with boomer buyers.
• Consider homes with stairs. More baby boomers are buying large houses than in the past. So looking at multi-level homes doesn't necessarily rule them out as competition. But plenty of boomers are still downsizing or may even buy houses that are large but just one story. Focusing on houses with stairs could help your chances.
• Get creative with your offer. So baby boomers have all-cash offers or higher down payments? Find other ways to make your offer competitive. Consider waiving contingencies, such as the appraisal or inspection contingency, to make the seller's life easier. These tactics are risky, though, so discuss the pros and cons with your real estate agent.
• Use an experienced Realtor. Choose an agent who understands your local housing market and can help you craft a competitive offer. When the housing market is tough, a savvy Realtor is one of your best tools.

Related: Why first-time homebuyers face a stacked deck right now