Real estate trends often reflect fluctuating social and economic dynamics. One new trend shows changes in how different generations buy homes.

The National Association of REALTORS^® (NAR) 2025 Home Buyers and Sellers Generational Trends report found that baby boomers now make up the largest generational group of homebuyers. Millennials, the country’s largest population segment, held that spot for nearly a decade but decreased home buying by 38% from a year ago. Gen X buying trends remain steady while Gen Z buyers represent the largest group of singles buying homes.

• 42% of all home buyers are baby boomers (ages 60-78)
• 29% are Millennials (ages 26-44, down from 38% a year ago)
• 24% are Gen X (ages 45-59)
• 3% are Gen Z (ages 18-25)

“Each generation brings a unique set of circumstances and preferences,” says Abby Hauke, board chair for the Greater Milwaukee Association of REALTORS^® (GMAR). “Knowing what’s important to different age groups sheds light on how to make sure buyers find the best home for their needs and interests.”

Baby Boomers: Changing Needs for Established Homeowners

Baby Boomers, born between 1946 and 1964, have significantly impacted the housing market for decades. As they now approach retirement, their changing lifestyle needs and financial stability influence their home buying choices.

“We see many baby boomers opting to downsize their homes,” says Sarah Cole, a REALTOR^® with Landmark Realty. “With their children grown and gone from home, maintaining large properties becomes less practical. Downsizing allows them to free up equity, reduce maintenance costs and simplify their living arrangements.”

Baby boomers prioritize comfort and accessibility when buying a home. According to 2024 research by the Senior Housing Institute, 80% of baby boomers look for homes with single-story layouts or accessible features to accommodate age-related mobility concerns.

They value properties equipped with amenities that facilitate ease of living, including walk-in showers, wider doorways and ramps. Their focus on accessibility reflects their desire for homes that can adapt to changing physical needs over time.

They also have an increased interest in community living.

Research by AARP in 2024 found that 78% of baby boomers prefer neighborhoods with strong community ties and active social programs.

“Retirement communities, active adult neighborhoods and age-restricted developments offer social engagement, amenities and healthcare services, making them appealing choices for this generation,” Cole says. “They appreciate homes in areas where they can participate in local events, volunteer opportunities and social gatherings.”

Millennials: Home Ownership Challenges

As they entered adulthood, millennials faced unique challenges in their quest for homeownership. In the aftermath of the Great Recession, many millennials experienced financial constraints that delayed major life milestones, such as marriage, starting a family and purchasing a home.

“There are good reasons why millennial home buyers prioritize affordability,” says Hauke. “With student loan debt at an all-time high and wages not keeping pace with inflation, this generation continues to struggle to save for a down payment.”

Additionally, the rising cost of living and housing prices further inhibit their ability to afford homes. Research from 2024 found that 65% of millennials sought homes priced below the median market value, demonstrating a clear preference for economically viable options.

Despite financial obstacles, millennials show a strong preference for urban living. They value proximity to amenities, job opportunities and vibrant social scenes. This inclination towards city life often means higher property prices, making it even more challenging for them to enter the housing market.

Generation Z: The Emerging Homebuyers

Gen Z exhibits distinct characteristics that influence their home buying activity as they slowly enter adulthood and the housing market.

“Known as the first fully digital generation, Gen Z’s tech-savvy nature significantly impacts their home buying process,” Hauke notes. “They rely heavily on online platforms for researching properties, virtual tours and digital transactions and similarly value working with tech-savvy REALTORS^®.”

Gen Z also values sustainable living and eco-friendly homes, often looking for energy-efficient properties and green building materials. According to 2024 data from the Housing Market Institute, 68% of Gen Z buyers also want properties with advanced smart home features, such as voice-activated controls and integrated home automation systems.

Aware of the financial struggles of their millennial predecessors, Gen Z handles their finances more cautiously. They tend to save diligently and, like millennials, seek affordable housing options. They are open to smaller homes or alternative housing solutions, such as tiny houses that have a small carbon footprint.

This generation’s commitment to ecological responsibility influences their preference for environmentally friendly living spaces. A 2024 survey by GreenLiving found that 70% of Gen Z buyers sought homes with renewable energy sources and sustainable construction practices. Moreover, 62% stressed the importance of communal areas, such as parks and shared spaces, which foster a sense of community and social interaction.

Working with a REALTOR^® who understands generational differences helps homebuyers find properties that meet their varied needs and align with their unique preferences.

The REALTOR^® Advantage

A REALTOR^® is a member of the National Association of REALTORS^®, is committed to a Code of Ethics and has the expertise to find the right home for everyone. Look for the “R” to determine if your agent is a REALTOR^®.

Locally, the Greater Milwaukee Association of REALTORS^® is a 5,500-member strong professional organization dedicated to providing information, services and products to help REALTOR^® help their clients buy and sell real estate. Visit gmar.com for more information.