There's a new normal in homeownership. One generation is winning big.

By Andy Medici

Home values have skyrocketed since the pandemic, but not every age group has benefited from those soaring prices.

The oldest Americans have increasingly gained a larger share of home wealth. Americans 70 years old and up owned 26% of the nation's residential real estate wealth as of the third quarter of 2025, according to a new report from real estate analytics firm Redfin. That's up from 14.6% in 1989, and the percentage has steadily increased since then to the point that it surpassed the percentage held by 40- to 54-year-olds for the first time last year, according to Redfin's tracking history.

Americans ages 55 to 69 own the largest share of the nation's real estate value, but that percentage has fallen from a high of 37.7% in 2013 to 35.3% in the third quarter of 2025.

The biggest loss in real estate value share over the years tracked has occurred for the 40- to 54-year-old age group. Redfin reports that that cohort held as much as 39.2% of the nation's residential real estate wealth in 2001. It continued to hold the largest share among the age groups tracked until 2010, when it was surpassed by 55- to 69-year-olds. Now, it's fallen behind the 70-plus group of Americans, as well.

The share of real estate wealth for Americans under age 40 stood at 12.6% in the third quarter of 2025, down from 21.9% in 1989.

“Breaking into homeownership wasn’t an easy feat for baby boomers, who faced high inflation and high interest rates. But mortgage rates then entered a decades-long decline, fueling years of home price growth that benefited baby boomers,” Redfin Chief Economist Daryl Fairweather said in a statement. “Those home price gains, along with a rebound in mortgage rates in recent years, have pushed homeownership out of reach for many younger Americans.”

Changes in the homebuying market

The homeowner landscape has changed drastically in recent years in part due to rapidly rising prices. In the second quarter of 2020, the median sale price for a U.S. home was $317,100, according to data compiled by the Federal Reserve. By the second quarter of 2022, that number was $437,700, up 38%. It dropped to $405,300 at the end of last year, but that's still up nearly 30% from the early days of the pandemic six years ago.

The cost of a "starter home" has jumped, as well, Redfin has found in its research. In 2012, the typical median sale price for what Redfin defined as a "starter home" was $95,000. That price rose in 2019 to $165,500 — and it rose further, to $250,000, by 2024.

A separate analysis from Redfin found that relative home affordability could return to a state of normalcy by 2030 if mortgage rates drop to about 5.5% and price growth stabilized instead of continuing to rise.

The prolonged issues with affordability have reshaped the housing market. While it's typical for older Americans to occupy a larger share of homeownership, the share of homes owned by Americans older than 55 years grew from 44.3% in 2008 to 54% in 2023, according to a study by Construction Coverage.  Meanwhile, Americans ages 35 to 54 saw a decline in homeownership, with their share dropping from 42% in 2008 to 34% in 2023.

Baby boomers, who were between the ages of 60 and 78 in 2024, account for 20% of the population but represent more than 37% of homeowners nationwide. 

For many baby boomers, there are a number of reasons in the current market not to sell their home. Those factors include having locked in a low interest rate in recent years, having already paid off their home, or simply having no interest in moving again. 

According to an earlier survey of U.S. residents ages 18 to 65 by Redfin, 43% said they will never sell their home, the highest of any generational group. The biggest single reason cited for staying in place was that their home is almost or completely paid off, while others said they like where they live.

Separate data does suggest that Gen Z and younger millennials are making inroads into homeownership, though. More than 27% of Gen Zers nationwide owned their home last year, up from 26.1% a year earlier, according to Redfin. Millennials also eked out a gain in their homeownership rate, rising to 55.4% from 54.9% a year earlier.

The median age of first-time homebuyers dropped last year, falling to 35 from 36 in 2024, while the median age for repeat buyers came in at 47, down from a peak of 52.

Final Thoughts:
The shift in homeownership wealth shows just how much timing has played a role in today’s market, with older generations holding a growing share of equity while younger buyers face higher barriers to entry. For today’s buyers, especially first-time homeowners, this means being more strategic—understanding affordability, financing options, and where opportunity still exists. While the landscape has changed, there are still paths to ownership, especially as rates stabilize and inventory improves over time. If you’re thinking about buying, the key is getting a clear plan in place early—because even in a challenging market, the right move at the right time can build long-term wealth.