2024 U.S. Housing Shift: 22% of Buyers Are 70+, Surpassing Gen Z and Millennials Amid High Costs

The U.S. housing market is undergoing a historic demographic shift, as older adults now dominate home purchases over younger generations. Data from the National Association of Realtors (NAR) reveals that in 2024, the number of homebuyers aged 70 and older surpassed those under 35 for the first time on record. Older baby boomers (1946–1954) accounted for 22% of buyers, compared to 14% for younger millennials (1990–1998) and 5% for Gen Z (1999–2011). Deutsche Bank’s Jim Reid notes that 46% of 2024 home purchases were made by those aged 60 and over, signaling a dramatic reversal of historical trends [1].

The median age of first-time homebuyers has risen sharply, from 28 in 1991 to 38 in 2024, while the overall median age of homebuyers hit a record 56 in 2024—up from 46 in 2021. High mortgage rates and soaring home prices have pushed younger buyers out of the market. For example, the income required to afford a median-priced home in the U.S. reached $114,000 in 2024, far exceeding the average U.S. salary of $57,000. The U.S. Department of the Treasury reported that housing costs have outpaced income growth in most regions, further straining affordability [2].

This trend reflects broader economic imbalances. Stagnant wages, combined with inflated housing costs, have created a “lockout” effect for Gen Z and millennials. Older buyers, by contrast, often leverage retirement savings or downsizing strategies to navigate the market. Jim Reid attributes this shift to “high interest rates and elevated home prices” delaying intergenerational wealth transfer through housing. He forecasts that younger generations will eventually inherit or purchase homes held by older buyers, but the financial conditions required to bridge this gap remain uncertain [3].

The implications extend beyond individual buyers. Housing developers and lenders are pivoting to cater to older demographics, offering accessible designs and retirement-friendly financing. Real estate agents are also prioritizing older clients, who typically possess higher liquidity and are less sensitive to market volatility. However, this shift raises concerns about intergenerational equity. As older buyers accumulate equity, younger buyers face not only higher purchase prices but also a shrinking inventory of affordable homes, potentially exacerbating wealth gaps and altering community demographics.

Policy solutions remain contentious. While proposals like rent-to-own programs or tax incentives for first-time buyers have been discussed, systemic reforms to align wages with housing costs are seen as critical. The U.S. Treasury’s report highlights the persistent affordability crisis, even as market conditions gradually rebalance. For now, the housing market’s transformation underscores a redefinition of the American dream—one where homeownership is increasingly delayed or reimagined for younger generations.

Sources: [1] [Baby Boomer Homebuyers Dominate Market as Millennials and Gen Z Struggle] [https://fortune.com/2025/07/23/baby-boomers-dominate-housing-market-millennials-gen-z/] [2] [U.S. Housing Affordability Report] [https://www.treas.gov] [3] [Deutsche Bank Macro Research Note] [https://www.db.com]