At the beginning of April, the National Association of REALTORS^® released the 2025 Home Buyers and Sellers Generational Trends Report which examines the characteristics of different generations in the housing market. Let’s explore some of the key takeaways from this report to understand the demographic attributes of recent home buyers and sellers.

1. Baby Boomers make up the largest share of home buyers and sellers.

The baby boomer generation (aged 60 to 78) gained the top spot in the housing market, representing 42% of home buyers and 53% of home sellers. They are motivated to make these housing market moves due to a desire to be closer to friends and family as well as to meet their retirement needs. Older adults have stayed in their current homes for a long time which has allowed them to build significant levels of equity, especially through home appreciation over recent years. This financial advantage has even made it possible for an increasing number of them to make all-cash purchases, and they are likely to be less affected by the elevated mortgage rates. This emerging trend highlights the significant impact of baby boomers on the housing market.

Figure 1: Share of Buyers and Sellers by Generation

2. The share of first-time buyers has declined to a historically low level.

Reaching a historic low of 24% since the inception of this report in 1981, the share of first-time home buyers declined significantly from 32% last year. Among this group, younger millennials (aged 26 to 34 years) had the highest share of first-time homebuyers at 71%. Affordability constraints due to rising home prices and mortgage rates are particularly impacting first-time home buyers. In a sign that individuals are delaying home purchases, the median first-time home buyer age has risen to 38 years, up from 35 years just last year. Moreover, an increasing share of all-cash buyers (26%) put first-time buyers, who are more likely to finance their home purchases, at a competitive disadvantage.

3. Older buyers are less likely to finance their home purchases.

74% of home buyers relied on financing to purchase their homes while a record-high 26% of buyers paid cash for their homes. The share of buyers relying on financing decreases as the buyer’s age increases. Younger buyers continue to depend on savings for their down payment, while older buyers are more likely to use the proceeds from the sale of their previous residence. 33% of younger millennials received down payment help in the form of a gift or a loan from friends/relatives. This trend highlights a notable difference in the financing methods that home buyers rely on, while also emphasizing the influence of generational wealth disparities and current economic conditions.

4. Real estate agents remain the most relied-on resource in the home buying and selling process.

One common theme across the different generational groups is their reliance on real estate agents. 88% of buyers purchased their home through a real estate agent or broker, with younger millennials engaging their services the most at 91%, followed closely by older millennials at 90%. Buyers sought agents’ assistance in finding the right home and negotiating purchase terms. Sellers depend on agents to help with pricing their homes competitively, marketing their homes, and selling their homes within a specific timeframe. Despite the increasing availability of online resources, real estate agents remain crucial in navigating the complexities of buying and selling homes across the different generations of buyers and sellers. 

For more information on housing, demographic and economic trends in Virginia, be sure to check out Virginia REALTORS^® other Economic Insights blogs and our Data Page.