The proportion of millennials and first-time buyers has plummeted as they face record high house prices, fierce competition and a flood of all-cash offers. Meanwhile, the boomers - the wealthiest generation - have embarked on a buying spree. Many of them traded their homes for homes, using the proceeds from the sale to buy their next piece of real estate. Some were able to do so without a mortgage, which created another substantial advantage.

"Many millennials may be looking at their boomer parents with a bit of envy this year," says Jessica Lautz, vice president for research at the National Association of Realtors. Boomers "were able to buy their dream home at a time when millennials couldn't even find a house they could compromise on."

The report is based on a survey of nearly 5,000 buyers who purchased their primary residence in the 12 months ending June 2022.

According to the National Association of Realtors®' 2023 Home Buyers and Sellers Generational Trends report, baby boomers emerged as the largest group of home buyers, completing 39 percent of all U.S. home purchases. This is up from 29% the previous year.

Meanwhile, the percentage of millennials successfully completing home transactions dropped from 43% to 28%. This is the first time since 2014 that millennials have not made up the largest proportion of buyers, as this group has struggled with rising rents, student debt and childcare costs. High house prices and rising mortgage rates have made it more financially challenging for millennials.

The proportion of first-time buyers - the group without any existing home equity to put towards their next purchase - fell to 26 per cent. That's down from 34 per cent the previous year and the lowest percentage since the NAR began measuring their home ownership in 1981.

"Baby boomers," Lautz said, "have money, they have home equity, and they're able to win multiple bids by paying all cash or making a large down payment." They're not downsizing. Baby boomers are buying homes the same size or bigger than the ones they used to live in."

Generation X, an often forgotten group - currently aged between 43 and 57 - represents about 24 per cent of buyers. Meanwhile, the Silent Generation, aged 77 to 97, purchased around 4% of all homes.

A bright spot was the doubling of Generation Z buyers' share of all sales from 2% to 4%. This group of buyers aged 18 to 23 bought the smallest homes - usually under 1,500 square feet.

"We're seeing them creeping into the home-buying market," says Rouse.

But in order to succeed, many are receiving help. Nearly a third of Gen Z homebuyers lived with their families and saved money before becoming homeowners.

The pandemic, and the remote work arrangements it has created, seems to have changed migration patterns as buyers look for more affordable real estate markets. Sellers who move are generally doing so to be closer to their friends and family - and increasingly, to be closer to them, they are moving further away. The median distance of sellers moving from their former homes was 50 miles, up from 15 miles last year.

Unsurprisingly, baby boomers were also the largest group of home sellers at 52%. This is up from 42 per cent the previous year.

"Every extra year they live in a home before selling is likely to increase the equity they can use to buy their next home," said Rouse.