Baby boomers were the largest share of US homebuyers in the past year, leaping ahead of the larger cohort of millennials entering their prime homebuying years.
Boomers — who range in age between 60 and 78 — made up 42% of homebuyers in the past year, while millennials were 29%, according to a new report from the National Association of Realtors. Millennials lost significant ground compared with a year earlier when they were the largest share of buyers at 38%.
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One differentiator that stands out: Older buyers are substantially more likely to have purchased their homes with cash. More than half of older boomers, aged 70 to 78, were cash buyers, as were around 40% of younger boomers.
Meanwhile, more than 90% of millennial buyers financed their homes. That group of buyers has had to contend with mortgage rates north of 6% for several years, coupled with near-record prices. Many leaned on friends and family to help fund their purchases, with 27% of millennials aged 26 to 34 saying they received help with their down payment.
Among buyers who do use financing, boomers made down payments in excess of 28%. Younger millennials managed to put down just 10% on average, while older millennials put down 14%.
Learn more: What is a down payment, and how does it work?
“Older millennials are buying bigger and newer homes with larger down payments than their younger counterparts,” Jessica Lautz, NAR’s deputy chief economist and vice president of research, said in a statement. “This shift reflects the increasing role of equity in enabling repeat purchases, especially among older generations, while younger buyers continue to face affordability challenges.”
Just 24% of buyers were purchasing for the first time, down from 32% a year earlier. Younger millennials made up the largest cohort of first-time buyers.
Members of Gen Z, the oldest of whom are 25, made up the smallest share of homebuyers at 3%. Of those young buyers who managed to purchase, 30% were single women.
Twenty-four percent of buyers were Gen Xers, who range in age from 45 to 59. Both Gen Z and Gen X’s penetration in the market was unchanged from a year earlier.
Baby boomers made up more than half of the past year’s sellers, and on average, they sold after spending more than a decade in their homes — further underscoring the advantage of having built up equity.
Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.
