Older Americans Gain Edge in Housing Wealth

WASHINGTON — For the first time on record, Americans 70 and older held a larger share of the nation's real estate wealth than those ages 40 to 54, according to a new Redfin report.

The crossover occurred in the second quarter of 2025, based on an analysis of Federal Reserve data going back to 1989.

The oldest Americans have seen their share of U.S. real estate wealth surge from around 16% in 2005 to roughly 26% in 2025. Those ages 40 to 54 have seen the opposite trend, with their share plunging from about 36% to 26% over the same period, Redfin found.

Baby boomers are buying more homes than millennials

In dollar terms, Americans 70 and older held more real estate wealth than ever before in 2025, at over $12.5 trillion — up from less than $4 trillion in 2005.

The increase reflects decades of home price appreciation that disproportionately benefited baby boomers, according to Redfin chief economist Daryl Fairweather.

"Those home price gains, along with a rebound in mortgage rates in recent years, have pushed homeownership out of reach for many younger Americans," Fairweather said.

Younger Americans are also buying homes later because they're delaying marriage compared to previous generations, the report noted.

Affordability pressures are easing, slowly

Homebuyers have faced elevated mortgage rates, rising prices and limited inventory in recent years — challenges that have weighed heavily on younger, first-time buyers.

The share of first-time homebuyers fell to a record low of 21% in 2025, while the typical age climbed to an all-time high of 40, according to the National Association of Realtors.

At the same time, many older buyers — often flush with housing equity — were able to sidestep higher borrowing costs by paying in cash. That's part of the reason baby boomers (ages 60 to 78) made up 42% of all homebuyers, overtaking millennials (ages 26 to 44) as the largest group, NAR found.

Not your parents' housing market: 4 ways things have changed

But after multiple years of sluggish home sales, there are signs that affordability pressures are easing. The average 30-year fixed rate mortgage recently dipped below 6% for the first time since 2022.

Meanwhile, home price growth has slowed, particularly in markets across Texas and Florida, where new construction helped boost supply.

Inventory has also improved across much of the country, with fewer homeowners locked into ultra-low mortgage rates and more willing to move.

Much of the real estate held by the oldest Americans will eventually change hands, but that shift may not happen en masse for another five to 10 years, Fairweather noted.

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