Insights from the 2025 NAR Generational Trends Report for Builders and Remodelers
The housing market is always evolving, but this year’s Home Buyers and Sellers Generational Trends Report from the National Association of REALTORS® offers some particularly eye-opening shifts — especially for builders and remodelers looking to connect
with today’s buyers.
From Baby Boomers buying with cash to millennials navigating high interest rates, each generation is bringing a distinct set of preferences, budgets, and motivations to the table.
Baby Boomers: Leading the Market with Equity
Baby Boomers (ages 60–78) have emerged as the dominant force in the housing market, accounting for 42% of homebuyers and 53% of sellers. Their financial strength is evident, with many leveraging substantial home equity to make purchases — often in cash — thus sidestepping high mortgage rates. This generation’s motivations include downsizing, relocating closer to family, and preparing for retirement.
What Builders Should Know:
- Accessibility is key: One-level living, wider doorways, and minimal stairs are big selling points.
- Low maintenance wins: Homes with durable siding, composite decking, and easy-to-clean interiors appeal to Boomers focused on lifestyle over upkeep.
- Location still matters: Proximity to family, medical care, and community amenities make a big difference in their decisions.
Generation X: Embracing Multigenerational Living
Generation X (ages 45–59) often flies under the radar, but they’re doing something notable: buying multigenerational homes. About 21% of Gen X buyers chose homes that could accommodate aging parents, adult children, or both.
They’re juggling caregiving roles and careers — and they need homes that can support that.
What Builders Should Know:
- Flexible floor plans: In-law suites, finished basements, and private entries can make or break a sale.
- Soundproofing and separation: Multiple generations under one roof means privacy is crucial.
- Storage, storage, storage: Larger households come with more stuff — design with that in mind.
Millennials: Navigating Affordability Challenges
Millennials (ages 26–44) now make up 29% of homebuyers, down from recent years. Still, they’re a major market force—and their needs are unique. More than 70% of younger millennials are first-time buyers, often grappling with student loan debt and rising home prices.
They’re focused on affordability, but that doesn’t mean they’ll sacrifice function or style.
What Builders Should Know:
- Smaller footprints, smarter layouts: Think starter homes with flexible spaces that can grow with a family.
- Energy efficiency matters: Lower monthly utility bills are a huge draw.
- Tech sells: Smart thermostats, app-enabled locks, and prewired spaces are almost expected by this generation.
Generation Z: Emerging Buyers with Distinct Preferences
They’re still a small piece of the pie — just 3% of buyers — but Gen Z (ages 18–25) is entering the market with surprising confidence. One standout stat: nearly a third of Gen Z buyers are single women. This group is pragmatic and often chooses older homes that need some work but offer more value.
What Builders Should Know:
- Entry-level appeal: If you’re in the remodeling space, Gen Z is your audience for budget-conscious upgrades.
- Compact, urban, and connected: Smaller homes in walkable areas are high on their wish lists.
- Make it personal: This generation wants their home to reflect their identity; offering customization or design choices is a strong draw.
Each generation brings its own mindset to the homebuying process, shaped by life stage, financial situation, and values. For builders and remodelers, the opportunity lies in designing homes and services that meet people where they are.
