Baby boomers, defined as Americans born between 1946 and 1964, have spent decades building wealth through housing. Now, as the generation moves deeper into retirement, that housing position is becoming one of the most important factors shaping future demand.
While much of the industry’s attention remains focused on younger buyers, boomers continue to play an outsized role in the market. According to the National Association of Realtors, they accounted for 42% of recent home buyers and 55% of home sellers, making them the largest share of both groups. However, the boomer opportunity also comes with a unique challenge.
Few generations have benefited from housing appreciation the way baby boomers have: nearly 79% of boomer-headed households owned their home in 2024, compared with 71% of Gen X households and 54% of millennial households. More importantly, over half of boomer homeowners owned their home free and clear, far above the rates seen among younger generations.
That fact creates substantial financial flexibility, as many boomers purchased homes decades ago, allowing them to benefit from years of appreciation while steadily paying down mortgage debt. As a result, millions now hold significant home equity that can help fund another purchase through a large down payment or, in some cases, an all-cash transaction.
The Equity Advantage
On paper, everything in the section above should position boomers as an attractive buyer pool for builders, but the same factors that give boomers buying power also help explain why many are staying put.
For homeowners who have paid off their mortgage, monthly housing costs are often difficult to replicate in today’s market. Even households that have paid off their home or have significant equity find that moving means exchanging a highly favorable housing position for higher property taxes, insurance premiums, HOA fees, transaction expenses, and moving costs. In other words, equity creates purchasing power, but it does not automatically create motivation.
The Builder Challenge
Since many boomers can afford to move but have little financial incentive to do so, it places a greater importance on delivering a lifestyle proposition rather than simply a housing product. Communities that reduce maintenance responsibilities, improve accessibility, offer social amenities, or bring residents closer to family and services may be better positioned to attract boomer buyers than those competing primarily on price.
The insights in this article were taken from a more in-depth National Report published in Zonda’s National Outlook.
