Baby boomers, now the largest group of both home buyers and sellers in the United States, are fundamentally reshaping the housing market. With more than 70 million Americans aged 65 or older, this generation is leveraging decades of accumulated home equity to make significant moves, driven by retirement, a desire to be closer to family, and evolving lifestyle needs.
This demographic shift, often called the “Silver Tsunami,” is fueling three major trends: a move toward smaller, more manageable homes, a growing commitment to aging in place, and a record-breaking rise in multigenerational living arrangements.
Key Takeaways
- Baby boomers (ages 60-78) are now the largest share of both home buyers and sellers, according to the National Association of REALTORS® (NAR).
- A significant portion of boomer buyers use proceeds from previous home sales, with 62% of older boomers (70-78) doing so.
- Three dominant housing trends are emerging: rightsizing to smaller homes, modifying current homes to age in place, and purchasing multigenerational properties.
- The number of buyers purchasing multigenerational homes reached a record high of 17% in 2024.
The Power of Equity: Boomers in the Driver's Seat
After living in their homes for an average of 13 to 16 years, many baby boomers have seen substantial appreciation in their property values. This financial flexibility allows them to make housing decisions that are less constrained by traditional mortgages and more focused on future lifestyle goals.
According to Jessica Lautz, deputy chief economist at NAR, this generation holds significant power in the current market. “Baby boomers are really holding the cards in the real estate market,” Lautz stated. “They have earned a tremendous amount of housing equity … and right now they’re making moves either in retirement or looking forward to retirement.”
This financial independence is a key factor driving their decisions. For many, selling a long-time family home provides the capital needed to purchase a new property outright, often in a different state or a more convenient neighborhood, without the financial pressures faced by younger generations.
Trend One: Rightsizing for a New Chapter
While the term “downsizing” is common, many experts prefer “rightsizing,” as the move is often about finding a home that better fits a new stage of life, not just reducing square footage. These moves are typically motivated by retirement, the desire for lower maintenance, or the need to be closer to children and grandchildren.
However, the process can be emotionally complex. Dane Ramsden, CEO of the In Network Real Estate in Detroit, describes it as “one of the most emotional transactions in real estate.” He emphasizes that it involves parting with decades of memories and a part of one's identity.
To manage this transition, professionals advise starting the process early. Decluttering a home filled with a lifetime of possessions is a major hurdle. Ramsden suggests families work together to decide what is meaningful and what can be sold, donated, or discarded. Coordinating with senior relocation specialists can also ease the logistical and emotional burden of such a significant move.
A Market in Motion
Data from NAR's 2025 Home Buyers and Sellers Generational Trends Report shows that half of younger boomers (ages 60-69) and 62% of older boomers (70-78) used proceeds from a recent home sale to purchase their new property.
Trend Two: The Commitment to Aging in Place
Despite the number of boomers selling their homes, a large segment intends to stay put. Comfort, community ties, and a desire to avoid capital gains taxes are strong motivators for remaining in a long-term residence. Yet, research from AARP indicates that only about 10% of homes in the U.S. are adequately equipped for senior living.
This has created a surge in demand for home modifications that enhance safety and accessibility. Many homeowners are now proactively renovating to prepare for future needs, rather than waiting for a health issue to force their hand.
Making Homes Safer for the Future
Universal design principles are becoming more mainstream. Features once considered specialized are now seen as practical upgrades for all ages. These include:
- Step-free entries: Eliminating stairs at the entrance to a home.
- First-floor primary suites: Ensuring a bedroom and full bathroom are accessible on the main level.
- Wider doorways: Accommodating walkers or wheelchairs.
- Lever-style door handles: Easier to operate for individuals with arthritis.
- Enhanced lighting: Motion-activated lights and brighter fixtures to prevent falls.
The 2025 U.S. Houzz Bathroom Trends Study confirmed this shift, noting a significant increase in renovations featuring low-curb or curbless showers. “Accessibility has become a defining priority in bathroom remodeling,” said Marine Sargsyan, a staff economist at Houzz, linking the trend to demographic shifts.
Trend Three: The Rise of the Multigenerational Household
Perhaps the most significant shift is the record-breaking increase in multigenerational living. In 2024, 17% of all home buyers purchased a property designed to house multiple generations under one roof—the highest percentage in the decade NAR has tracked this data. This trend is driven by a combination of factors, including the high cost of housing, the need for childcare, and the desire to provide care for aging parents.
What is a Multigenerational Home?
These properties often feature specific designs to accommodate multiple family units, such as dual primary suites, separate entrances, secondary kitchenettes, or accessory dwelling units (ADUs), also known as casitas or in-law suites. These features allow families to live together while maintaining a degree of privacy and independence.
Real estate agents report a growing number of clients looking for these specific features. “We’re seeing more buyers who sell two homes and buy one property with an ADU so they can all live together,” noted Ryan Hvizda of Hvizda Realty Group in New Hampshire.
However, finding these homes can be a challenge. Todd Luong, a real estate professional in Texas, pointed out that many listing services lack a specific filter for “multigenerational” properties, making the search process difficult. He advises agents to proactively highlight features like first-floor suites or oversized bedrooms with private baths in their listings to attract this growing buyer segment.
As the baby boomer generation continues to navigate retirement and beyond, their decisions will continue to influence housing inventory, home design, and community planning for years to come.
