The long-anticipated shift in the U.S. real estate market is no longer on the horizon—it has arrived. With more than 70 million Americans now over the age of 65, the baby boomer generation has become the most significant force in residential real estate, now leading as both the largest group of home buyers and sellers.
This demographic, aged between 60 and 78, is leveraging decades of accumulated home equity to redefine their living situations, driving three major trends: downsizing to more manageable homes, modifying current properties to age in place, and a record-setting move toward multigenerational households.
Key Takeaways
- Baby boomers are now the largest share of both home buyers and sellers in the U.S. market.
- Three dominant housing trends have emerged: rightsizing, aging in place, and multigenerational living.
- A record 17% of home buyers in 2024 purchased multigenerational homes, driven by affordability and caregiving needs.
- Significant home equity allows many boomers to make all-cash purchases, influencing market dynamics.
The Economic Force of a Generation
The influence of baby boomers on the current housing market is substantial. This generation is not just participating; they are actively setting the pace. "Baby boomers are really holding the cards in the real estate market," said Jessica Lautz, a deputy chief economist who studies market trends. "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 power stems from long-term homeownership. Many have lived in their homes for 13 to 16 years, accumulating significant appreciation. This wealth allows for considerable flexibility. Data shows that half of younger boomers (ages 60-69) and 62% of older boomers (ages 70-78) used proceeds from a recent home sale to purchase their new property, often with cash.
By the Numbers
Over 70 million Americans are now aged 65 or older. This demographic shift is directly impacting housing supply and demand across the country.
This financial independence gives them a competitive edge in a market with tight inventory and fluctuating interest rates. While younger generations often struggle with financing, many boomers can bypass these hurdles, making them formidable players in any negotiation.
Trend One: The Move to 'Rightsize'
For many older Americans, the large family home has become impractical. This has fueled a trend often called downsizing, though some experts prefer the term "rightsizing." The goal is to find a home that better fits a new stage of life, whether that means less maintenance, a single-story layout, or a location closer to family.
Dane Ramsden, a real estate executive in Detroit who specializes in these transitions, calls it "one of the most emotional transactions in real estate." He notes that the process is about much more than just square footage. "It’s about memory and identity," Ramsden explained.
To manage this complex process, professionals advise starting early. Encouraging clients to sort through decades of belongings well before a sale is crucial. This involves categorizing items to keep, sell, donate, or discard. For many families, this decluttering process is the biggest obstacle to moving.
Preparing for a Smoother Transition
To ease the emotional challenges of rightsizing, experts suggest recreating familiar setups in the new home before the move. Arranging furniture or even placing a lamp and a favorite book on the nightstand can help a new space feel like home more quickly.
Real estate agents are increasingly connecting clients with senior relocation specialists who can coordinate the logistics of a move. These professionals can manage everything from estate sales to the physical relocation, reducing stress on the family.
Trend Two: Aging in Place with Modern Upgrades
Not every boomer is looking to move. A significant portion plans to remain in their current homes for as long as possible. "There is a segment of baby boomers who are just wanting to stay put," Lautz observed. "Some of it may have to do with comfort—they love their home."
However, the desire to age in place is often met with the reality that most houses aren't built for senior living. Research from AARP indicates that only about 10% of homes in the nation are adequately prepared for the needs of older residents.
This gap has created a surge in home renovations focused on accessibility. Mary Harmon Young, a real estate broker in Alabama with a Seniors Real Estate Specialist (SRES®) designation, helps clients identify or create homes suitable for long-term living. She points to universal design features as key considerations.
- Step-free entries to eliminate tripping hazards.
- Wider doorways to accommodate walkers or wheelchairs.
- First-floor primary bedrooms to avoid stairs.
- Lever-style door handles, which are easier for arthritic hands to operate.
Recent studies on home remodeling confirm this shift. The 2025 U.S. Houzz Bathroom Trends Study found a growing demand for features like low-curb showers and improved lighting. "Accessibility has become a defining priority in bathroom remodeling," said Marine Sargsyan, a staff economist at Houzz.
Smart home technology also plays a role, with devices like motion-activated lights and automated door alerts providing an extra layer of safety and peace of mind for residents and their families.
Trend Three: The Rise of the Multigenerational Household
Perhaps the most significant shift is the dramatic increase in multigenerational living. In 2024, an unprecedented 17% of all buyers purchased a multigenerational home, the highest level recorded in over a decade of tracking. Families are pooling resources to afford a home, provide care for aging parents, or simply stay more connected.
This trend is changing what buyers look for in a property. "Single-story homes, clearly defined privacy zones and secondary kitchenettes make shared living much more functional," Young noted.
"We’re seeing more buyers who sell two homes and buy one property with an ADU so they can all live together. There’s more than a financial benefit."
Builders are beginning to respond with new floor plans that include dual primary suites, separate entrances, or even detached accessory dwelling units (ADUs), often called casitas or in-law suites. These secondary structures allow for both proximity and independence.
Despite the demand, finding these homes can be a challenge. Todd Luong, a real estate professional in Frisco, Texas, pointed out a significant issue. "It’s hard to look for multigenerational homes … there’s no filter for multigenerational households on the MLS," he said. Agents often have to manually search for listings with features like first-floor guest suites or oversized bedrooms with private baths.
As this trend continues to grow, real estate professionals who understand the unique financial, legal, and emotional complexities of these purchases will be better equipped to serve this expanding segment of the market. The "Silver Tsunami" is not just a wave of sellers; it's a fundamental reshaping of what it means to be home in America.
