How Older Repeat Buyers Are Quietly Reshaping U.S. Homeownership

The graying of the American homebuyer

In just one generation, the profile of the “typical” U.S. homebuyer has shifted sharply older. According to the National Association of Realtors’ latest Profile of Home Buyers and Sellers, the median age of first-time buyers reached a record 40 in 2024, while the median age for all buyers climbed to 59.[nar.realtor]

That’s a dramatic change from roughly 15 years ago, when the average buyer was still in their late 30s.[aol.com] Over the same period, the share of sales going to first-time buyers has shrunk to 24%, down from about 32% just a year earlier.[nar.realtor] The market is gradually tilting away from younger households trying to get on the ladder and toward older buyers who are already on it.

This shift is not just a demographic curiosity—it’s a structural change with big implications for affordability, inventory, and how housing wealth is distributed in the U.S.

Millennials squeezed, boomers dominant

Despite being the largest age cohort in the country, millennials now account for only 29% of homebuyers.[nar.realtor] Baby boomers, by contrast, make up about 42% of buyers, giving them outsized influence over prices, competition, and neighborhood dynamics.

Several forces are working against younger would-be buyers. Real estate agents interviewed by Moneywise and Business Insider report that many younger households are juggling high rents, student debt, and rising property taxes while trying to save for down payments.[nar.realtor] Even when they manage to get pre-approved, they often find themselves outbid by older buyers bringing more cash and larger down payments to the table.

The old idea of a smooth “move-up” ladder—starter home, mid-tier home, forever home—is also breaking down. Agents in markets from New Jersey to Virginia say many younger owners are no longer trading up; they are simply staying put because the gap between their current home and a larger one has become too expensive to bridge.[nar.realtor]

Cash, equity, and the new competition

Older repeat buyers have a powerful advantage that most first-timers lack: equity. The NAR data show the median age of repeat buyers is now 62, and nearly one-third of these buyers pay all cash.[nar.realtor] Across the whole market, all-cash purchases now make up about 26% of transactions, a record high.[nar.realtor]

For a first-time buyer relying on financing, competing against a cash offer is tough. Sellers often prefer cash because it eliminates appraisal and financing risks and can close faster. In multiple-offer situations, that edge can easily decide who wins.

At the same time, many existing owners are locked into ultra-low mortgage rates from earlier years. NAR estimates the median tenure in a home has reached roughly 11 years, the highest on record.[nar.realtor] That “rate lock-in” effect keeps many potential sellers from listing, which further tightens inventory and amplifies competition for the relatively few homes that do hit the market.

The widely discussed idea of a wave of older owners suddenly listing their homes in a so-called “silver tsunami” has not materialized. Instead, many baby boomers plan to age in place and, in some cases, buy additional properties such as second homes.[nar.realtor]

What this means for affordability and wealth gaps

One of the biggest long-term consequences of delayed homebuying is lost equity. NAR’s analysis suggests that pushing a first purchase from age 30 to age 40 can mean missing out on roughly $150,000 in potential home equity growth over time.[nar.realtor] That’s money that could otherwise support a larger move-up home, help pay for education, or bolster retirement savings.

Meanwhile, housing wealth is increasingly concentrated among older owners. Realtor.com estimates that Americans over 65 now control nearly 40% of U.S. housing wealth, worth about $19 trillion.[realtor.com] As long as that equity remains largely in place—and is often backed by very low fixed-rate mortgages—it will be difficult for younger buyers to close the gap.

This age-based divide in homeownership matters because housing is a primary driver of long-term household wealth in the U.S. If younger households enter the market later, or not at all, they have less time to benefit from price appreciation and principal paydown. Over decades, that can widen wealth differences between generations and even between peers who bought at different ages.

Local conditions still vary widely. Some lower-cost markets and smaller metros offer more accessible entry points, especially for remote workers who can relocate. But in many coastal and high-demand metros, older, equity-rich buyers are setting the pace—and the price.

Strategies for buyers, owners, and investors

For younger or first-time buyers, the new age dynamics make preparation and flexibility crucial:

• **Strengthen the balance sheet.** Paying down high-interest debt and improving credit can help offset some of the leverage older cash buyers have, by making financed offers as strong as possible.
• **Broaden the search.** Considering different neighborhoods, nearby metros, or more modest property types can open up options in markets where older buyers dominate.
• **Build real estate exposure early.** Even if buying a primary residence is out of reach, some households use REITs or fractional real estate platforms to gain exposure to property income and appreciation while they save for a down payment.[nar.realtor]

For older owners, the same demographic trends create opportunities and responsibilities:

• **Use equity strategically.** Home equity lines of credit or cash-out refinances can help fund investments, home improvements, or long-term care, but they should be weighed against the risk of taking on higher-rate debt.
• **Plan for aging in place.** With many older owners intending to stay put, proactively budgeting for accessibility upgrades, tax changes, and insurance costs can make that plan more sustainable.

Investors also need to pay attention to who owns the housing stock. With a growing share of homes held by older households, demand is rising for age-friendly housing, including smaller, low-maintenance homes and communities with medical and support services built in. Real estate investment trusts focused on healthcare facilities and senior housing may benefit from these trends.[nar.realtor]

The bottom line

The story of today’s housing market is not just about mortgage rates and inventory—it’s also about age. Older repeat buyers, armed with equity and cash, now shape much of the competition for homes. Younger households can still become owners, but the path is longer, steeper, and more dependent on careful planning.

Understanding how buyer demographics are shifting can help everyone—from first-timers to long-time owners and investors—make more informed decisions in a market where time, age, and equity increasingly determine who gets the keys.