|
Getting your Trinity Audio player ready...
|
Baby boomers may make up the largest generational group of homebuyers nationwide, but older millennials — now roughly ages 36 to 45 — have emerged as the highest-earning, biggest-spending buyers. They report the highest median household income of any generation at $132,700, purchase the largest homes (a median 2,100 square feet) and are the most likely to have children living at home, according to a new report examining generational trends among buyers and sellers over the past year.
The National Association of Realtors’ 2026 Home Buyers and Sellers Generational Trends report found that millennials account for just over a quarter (26%) of all homebuyers, down from previous years. But as the generation ages and more become homeowners, those still in the market are bringing greater purchasing power and are less likely to be first-time buyers.
Within the generation, however, the divide is growing. Younger millennials (roughly ages 27 to 35) are still largely first-time buyers struggling to enter the market, while older millennials are increasingly move-up buyers, often leveraging equity from existing homes. About 33% of older millennials purchased for the first time, down from 36% the previous year — a sign that many have already crossed into homeownership.
That shift is reshaping the market. In last year’s report, Generation X had the highest median household income at $130,000, followed by older millennials at $127,500. This year, older millennials moved into the top position, reflecting their growing purchasing power.
“Older millennial buyers are now entering middle age, and with that comes a shift,” said Jessica Lautz, the association’s deputy chief economist and vice president of research. “The housing market remains sharply divided between homeowners with equity and first-time buyers trying to break in … many of whom are younger millennials.”
That divide is especially pronounced in Silicon Valley, where first-time buyers face steep barriers. The median price of a single-family home reached $1.98 million in December 2025 — about 51% higher than the Bay Area overall, more than double California and nearly five times the national median. More than half of homes in Santa Clara and San Mateo counties that sold last year were priced at $2 million or more, and 7% exceeded $5 million, according to a 2026 report from Joint Venture Silicon Valley.
Affordability remains a major constraint. Only 25% of potential first-time buyers in San Mateo County and 27% in Santa Clara County could afford a median-priced home in 2025, compared to 54% nationally, according to the data from Joint Venture Silicon Valley.
Boomers still dominate
Despite the rise of older millennials, baby boomers — those born between 1946 and 1964 — continue to dominate the market, representing 42% of all buyers and 53% of all sellers nationwide. Many are purchasing homes without financing: More than half (51%) of boomers paid entirely in cash.
Other generations hold smaller shares. Millennials made up 26% of buyers, while Generation X made up 25%.
On the Midpeninsula, however, cash purchases appear to be driven more by price than age. Roughly two-thirds of home sales between $2 million and $6 million were financed in 2024, while only about a quarter of sales between $6 million and $11 million used financing. At higher price points, cash transactions dominate.
“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,” Lautz said.
Fewer first-time buyers
The report, which analyzed 173,250 transactions nationwide between July 2024 and June 2025, shows a continued decline in first-time buyers. Only 21% of recent buyers were purchasing for the first time, down from 24% the previous year — the lowest share since tracking began in 1981.
First-time buying remains most common (60%) among younger millennials, while only one-third of older millennials are first-time buyers. Generation X was the only group to see a slight increase from 20% to 21%.
In high-cost regions like Silicon Valley, those trends are even more pronounced. Homeownership remains uneven across generations and demographic groups, with younger residents far less likely to own and many priced out entirely.
