Baby boomers’ cash advantage strengthens offers
NAR found 46% of buyers ages 71 to 79 and 39% of those 61 to 70 paid cash, giving many older buyers greater flexibility when structuring an offer.
Baby boomers are using decades of accumulated home equity to make cash purchases at rates far above younger buyers.
According to the National Association of Realtors (NAR), 46% of buyers ages 71 to 79 purchased without financing, along with 39% of those ages 61 to 70. Across all buyers, the share was 26%, compared with 3% of younger millennials and 7% of older millennials.
Even baby boomers who finance a purchase often borrow a smaller portion of the price. Many are selling longtime homes and directing the proceeds toward their next property, including moves that bring them closer to children and grandchildren.
Paying cash can eliminate mortgage payments and strengthen an offer, although buyers may also need to consider how much money remains readily available for retirement expenses.
"Paying cash can make an offer more attractive, simplify the transaction, and eliminate mortgage interest and monthly principal-and-interest payments," says John Donikian, vice president of Best Interest Financial. "For retirees on a fixed income, that predictability can provide valuable peace of mind."
Source: Realtor.com (08/06/26) Gerstein, Julie
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