Baby Boomers Lead in Home Buying as Millennial Purchases Decline

Homebuying trends in the Mid Valley area are echoing national shifts, with baby boomers now surpassing millennials as the predominant buyers of residential properties in 2025. This change is attributed to higher home prices and rising interest rates that have reshaped the market’s dynamics.

According to the recent National Association of REALTORS® 2025 Home Buyers and Sellers Generational Trend Report, baby boomers, aged between 60 and 78, constitute 42% of home purchasers this year, a significant increase from previous years. Conversely, the millennial share of the market has dropped from 38% last year to 29%. These changes come as no surprise given the financial challenges posed by the current economic climate.

The affordability gap is primarily driven by soaring borrowing costs and a steady rise in home values over the past four years. The report indicates that substantial home equity has enabled many older boomers to buy homes outright with cash. Approximately 50% of older boomers and two-fifths of younger boomers have made such purchases, starkly contrasting with the over 90% of younger buyers, under the age of 44, who needed financing to secure a home.

This trend has significant implications for the local real estate scene. With baby boomers actively purchasing, there may be less inventory available for first-time millennial homebuyers, who are already squeezed by high prices and interest rates. Furthermore, the types of homes in demand might shift, with boomers potentially looking for smaller, more manageable living spaces as they consider retirement and downsizing.

As this trend continues, potential homebuyers and sellers in El Monte, South El Monte, Baldwin Park, Rosemead, and Irwindale are urged to stay informed about market conditions and seek advice tailored to their specific circumstances. Looking ahead, the local real estate market may see more developments aimed at accommodating the needs of an older demographic, potentially influencing everything from property design to community amenities.

Residents interested in understanding how these trends might affect them, whether buying or selling, are encouraged to participate in upcoming real estate workshops hosted by local agencies. Through these forums, community members can gain insights, ask questions, and prepare better for the challenges of navigating the shifting housing landscape.