The 2026 Market Drivers By Generation

If you’ve been paying attention to the market lately, this won’t surprise you—people in their 60s and 70s are running the show right now.

According to the latest report from the National Association of REALTORS®, baby boomers have taken over as the largest group of both buyers and sellers. They’re not just participating…they’re driving the market.

And there’s a pretty simple reason why—equity.

Most of these homeowners have been in their homes for years, sometimes decades. That means they’ve built up serious equity, and that gives them options. While a lot of younger buyers are still trying to figure out how to get in, boomers are deciding where they want to go next.

Right now, they make up about 42% of buyers and over half of all sellers. That’s a massive shift, especially considering millennials used to dominate the conversation.

Now here’s the part people need to understand—this market is split.

On one side, you’ve got homeowners sitting on equity who can move when and how they want. On the other side, you’ve got first-time buyers trying to make the numbers work with higher prices and rates.

That’s why first-time buyers are at historic lows—just 21% of the market. And the average age of a first-time buyer? It’s now around 40 years old. That’s a big change from what it used to be.

That said, we are starting to see a little movement. As rates have come down slightly and more inventory hits the market, some first-time buyers are getting opportunities again. There’s a lot of pent-up demand sitting on the sidelines.

Now let’s go back to equity for a second—because this is where things really matter.

The average homeowner has gained over $100,000 in equity in just the past several years. For someone who’s owned their home longer, that number can be significantly higher. That’s what’s allowing people to downsize, relocate, or just make a move that fits their lifestyle better.

And that’s another shift—people aren’t just moving because they have to anymore. They’re moving because they want to. Closer to family, less maintenance, better quality of life.

Millennials are still in the mix, especially the older group. They’re becoming move-up buyers, buying larger homes, and typically bringing higher incomes into the equation. But even they’re often relying on equity or financial help to make it happen.

Then you’ve got Gen Z starting to step in.

They’re still a small percentage, but they’re doing things differently. More single buyers, more unmarried couples, and they’re not waiting for the “traditional milestones” to buy a home. They just want ownership—and they’re finding ways to make it happen.

A few other trends worth paying attention to:

Multigenerational living is still a factor—families combining households to save money or take care of each other.

Single women are a major force in the market right now, making up a significant portion of buyers.

And across the board, people are still leaning heavily on real estate agents—not just to find homes, but to help them understand the process and make smart decisions.

That part hasn’t changed.

No matter the market, having someone who knows how to navigate it still matters.