As affordability remains one of first-time buyers’ biggest hurdles in real estate, the face of homebuying remains squarely retirees and members of older generations who are repeat participants in the housing market.

The median age of a homebuyer now stands at 58, and there is “increased buying activity among those over 60,” according to the National Association of Realtors®’ (NAR) 2026 Profile of Home Buyers and Sellers. Repeat buyers—who have a median age of 62—accounted for 78% of all home purchases.

First-time buyers claim only 22% of housing market activity, and the younger generations remain locked out as the median age of a first-time buyer rests at 40—roughly the same as last year.

Jessica Lautz—NAR deputy chief economist and vice president of research—noted in a release that the market share for first-time buyers is about “half the historical norm of 40% seen before 2008” as “affordability remains (their) biggest hurdle.”

“Those saving on their own continue to face high rent, student debt, and a shortage of homes they can afford,” she continued.

The generational transfer and the “silver tsunami”

In Lautz’s view—as she states in an interview with RISMedia—one of the biggest takeaways from the report is the “growing share of all cash first-time homebuyers,” who she notes are “very different from your traditional first-time homebuyer.”

“Their median age is in their 50s, and compared to someone who is financing, whose median age is in their late 30s (38, according to the report),” she explains. “We’re seeing that there’s a growing share of inheritance that is playing a role for these first-time homebuyers. The idea of the silver tsunami, the generational transfer of wealth, it’s starting to happen, and we’re picking it up in the data.”

The “silver tsunami” refers to a potential wave of inventory released into the market due to a possible increase in older Americans selling their homes, something that housing economists have long debated, with more focus on the demographic recently as home sales slow.

Over the summer, Bright MLS Chief Economist Lisa Sturtevant broke down this potential phenomenon in another recent report investigating how much stock housing market observers should place in this “tsunami.”

Sturtevant defined the “silver tsunami” as mortgage-free 70-plus year old homeowners listing their homes. Currently, about one-in-five homeowners are 70 or older, while about 45% of homeowners are 60 years old, she reported. 

However, Sturtevant found that this “tsunami” will be unevenly distributed throughout the country, as the majority of 70-plus homeowners are concentrated in relatively more affordable Midwest metro areas.

“Will demographics solve the homeownership affordability challenge? The answer is no, but the aging of the population will dramatically shift the housing market landscape in specific parts of the country,” said Sturtevant.

A recent Realtor.com® report corroborated Sturtevant’s idea that even though raw aggregate numbers show a tsunami (and a growing one at that), with a 33.7% increase in housing relinquishments by older Americans in the next decade, closer analysis reveals that the tsunami may only be a trickle in some markets.

“Supply and demand are geographically mismatched,” the report stated. “(O)ur research shows that the impact also varies sharply by home type: Family and large homes see relatively larger relief, while starter homes see comparatively little.”

Lautz explains that there is not yet a full tsunami in the market, but generational transfers of wealth are occurring, and they are changing who can buy a first home and when.

“We’re seeing that there’s a growing share of inheritance that is playing a role for these first-time homebuyers,” she continues. “Because people are living longer, the generation receiving that wealth is no longer young adults. Many are reaching middle age before they can buy their first home.”

Other shifts in buying

Over the past few years there has been an increase in multigenerational living, with 14% of buyers purchasing a multigenerational home. The report lists the top reasons for these purchases as: taking care of aging parents (30%), cost savings (23%), children over the age of 18 never leaving home (19%) and children over the age of 18 moving back home (18%).

“I think we’re at a new normal where people need to pull finances in a different sort of way to be able to afford property,” explains Lautz. 

Lautz also highlighted childcare costs as a large reason for multigenerational living, as it is moving up in the data. 

“For families who do have kids under the age of 18, it’s increasingly playing a role in why people are choosing multigenerational settings because it’s an extra set of adult hands,” she says.

Lautz adds that with multigenerational living there is a pathway into homeownership forming for first-time buyers as “a way to actually encourage homeownership in the long term is to allow them to skip paying market value rent.”

The report cited Census data, which stated that the share of young adults (aged 25-34) who are living at home is elevated—up from 9% back in 1980 to 16.4% now. With this increase, more first-time buyers who have made this move are able to buy a home—up from 12% in 1993 to 21% now.

Homeowners are also remaining in their homes for longer than historical data. The median residency in a home before selling was 12 years in the report, an all-time high.

This is partially due to the “lock-in” effect in the market, where homeowners with lower rates are waiting longer periods to sell so as to not have to spend more money monthly. 

“The golden handcuffs, the low interest rate mortgages, make it appealing to stay put for a longer period of time,” Lautz says. “We’re seeing home sellers who are successfully making those housing trades, holding on to homes for a longer period of time. That’s allowing them for their next purchase to put down a very large down payment or even an all cash purchase.”

As retirees lead the market, though, Lautz notes that the reasons people are moving have shifted. 

The report noted that the reasons for moving have shifted away from necessities due to jobs or life events (falling from 25% of buyers in 2000 to only 5% in 2026), and toward moving to be closer to family and friends (rising from 6% in 2000 to 14% in 2026). This is directly due to retirees being more active in the market.

“Seeing these optional moves lead the housing market means that I think there’s a lot of people who are settling in and staying in place for longer periods of time too,” Lautz adds. “I think all of this is related, but it also means there’s that lack of inventory for first-time homebuyers that’s freeing up because of fewer housing trades as well.”

Agents remain essential guides

Despite all of the challenges agents have faced in the market and in the public perception as of late, NAR’s report had a positive note to share: agents remain essential guides to buyers and sellers navigating the market.

The report outlined that 90% of all homebuyers used an agent or a broker to assist on their purchase, which was the highest share recorded. In addition, 92% of home sellers used an agent or a broker, which was an all-time high. Only 5% of sales were for-sale-by-owner, which matched the all-time low.

“We know that this is a very unique housing market—everything is very local when it comes to the housing market today, and each unique transaction is going to have its own complications as well,” Lautz explains. “Having someone by your side to help you purchase that home and then sell that property, tell you how to fix up that home for sale, walk you through your unique transaction, I think is becoming increasingly important.”

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