The American dream of homeownership is increasingly becoming a game for those who already have a foot in the door. According to the 2026 Home Buyers and Sellers Generational Trends report released by the National Association of REALTORS® (NAR) on Wednesday, Baby Boomers have maintained their iron grip as the largest demographic of buyers, while the share of first-time purchasers has plummeted to the lowest level ever recorded.
Only about one in five people who bought a home this year were doing so for the first time. At just 21%, this figure marks a significant drop from 24% last year and represents a historic low since the NAR began tracking this data back in 1981.
The struggle is most visible among younger Millennials, where the share of first-time buyers crashed from 71% to 60% in just twelve months.
“The housing market remains sharply divided between homeowners with equity and first-time buyers trying to break in—many of whom are younger Millennials,” said Dr. Jessica Lautz, NAR Deputy Chief Economist. She noted that for these younger households, a combination of limited inventory and affordability hurdles continues to make the finish line move further away.
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While the market is getting tougher for newcomers, Baby Boomers remained steady, accounting for 42% of all home purchases. Millennials saw their total market share dip to 26%, though a clear divide has emerged within that generation.
Older Millennials are now the highest-earning group of buyers, with a median household income of $132,700. Leveraging the equity from their previous homes, they are buying the largest properties on the market, averaging 2,100 square feet.
“Older Millennial buyers are now entering middle age, and with that comes a shift,” Lautz explained. “This cohort is now the highest-earning generation of home buyers, buys the largest homes and is most likely to have children living with them.”
Interestingly, Gen Z is beginning to make its mark, even if their total market share is a modest 4%. This group is rewriting the rules of ownership; 35% of Gen Z buyers were single females, and 17% were unmarried couples—both the highest rates of any generation. Lautz noted that for these young buyers, the desire to own a home often outweighs traditional milestones like marriage or starting a family.
The report also highlighted a decline in multigenerational living. Only 14% of buyers purchased a home intended for multiple generations, down from 17% the previous year. Common reasons for these arrangements included caring for aging parents or adult children moving back into the nest.
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On the selling side, Boomers are just as dominant, making up 55% of all sellers. On average, sellers stayed in their homes for 11 years before moving. However, the reasons for moving have shifted for the older generation. While they once moved for jobs, many are now relocating to be closer to family or to downsize for retirement.
Despite the shifting demographics, the reliance on professional help remains nearly universal. Eighty-eight percent of buyers and 91% of sellers worked with a real estate agent. Confidence in these professionals is high, with 91% of buyers stating they would recommend their agent to others.
For sellers, the payoff is clear: homes typically sold for 99% of their final list price, with some younger Millennial sellers even seeing prices soar 10% or more above what they asked.
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