Boomers own 28% of large US homes as upsizing trend accelerates

Wealthy baby boomers are buying larger homes in retirement, reversing the traditional downsizing pattern and reshaping the US housing market.

About 7% of home buyers ages 61 to 70 said the main reason they chose their new home was a desire for more space, up from 4% for that age group in 2016, according to the National Association of Realtors. Empty-nest baby boomers owned 28% of US homes with three or more bedrooms in 2024, compared with 16% for millennials with children, Redfin data show. The shift is rewriting the rules of retirement, when older Americans have historically moved into smaller, less expensive homes.

"The historic retirement play of sell your home and buy a smaller one just isn't happening," said April Tardiff, a financial adviser at Merrill Lynch in Portland, Maine. Eight of her clients retired this year, and every single one upsized. Only one client has downsized in the past five years, she said.

Boomers account for about 42% of home buyers, the largest share of any generation, and many are cash buyers, giving them an advantage over younger purchasers who need mortgages. The generation and those older hold roughly $110 trillion in total wealth, far more than younger Americans, according to Federal Reserve data. Many bought homes and stocks decades ago and have benefited from the appreciation of those assets.

The trend is most pronounced among affluent boomers who view their late-in-life residences as dream homes rather than downsizing targets. Angela and Victor Martino, both in their early 60s, raised their two daughters in a ranch house under 2,000 square feet in Denair, California. They recently bought the 5,000-square-foot home next door, complete with a commercial-grade kitchen and a playroom built to withstand damage from their seven grandchildren. "We'll downsize when they plant me 6 feet into the ground," Victor Martino said.

The Family-First Floor Plan

The pandemic accelerated the shift, as lockdowns made boomers value time with family and remote work enabled adult children to visit for longer stretches. Ed and Mary Smith, both in their 80s, bought a 4,000-square-foot home in Falmouth, Massachusetts, in 2022 — about 500 square feet larger than the house they left in New Jersey. The second floor is reserved for their three adult children and six grandchildren. "We live in a place they want to come to," Ed Smith said. "That's a big draw."

The Smiths' home features a primary-bedroom suite on the first floor for aging in place, a design choice that has become common among upsizing boomers. Interior designers report growing demand for high-end grab bars that match bathroom fixtures, first-floor primary suites set apart from common areas, and backyard accessory dwelling units where adult children stay during visits. Kit Stolz and Valerie Levett, ages 71 and 75, spent $200,000 converting a backyard office into an ADU near Ojai, California, and another $200,000 overhauling their kitchen. Their younger daughter and son-in-law stayed in the unit with their newborn in 2024.

What It Means for the Housing Market

The boomer upsizing trend has significant implications for housing supply and affordability. With boomers holding onto larger homes rather than freeing them up for younger families, the inventory of entry-level homes remains constrained. First-time buyers accounted for just 21% of all home purchases in 2025, roughly half the historical average of 40%, according to WalletHub data. The median age of a first-time buyer has risen to 40, up from 33 four years earlier.

Financial advisers say the shift is forcing them to rethink retirement planning. Tardiff said she now helps clients afford the home of their dreams rather than planning around a downsizing windfall, sometimes advising them to work longer than planned. "Financial planning postretirement has flipped," she said.

The trend also benefits home improvement retailers, luxury home builders, and real estate investment trusts focused on suburban single-family homes. Boomers are spending freely on renovations, additions, and premium features, injecting capital into the construction and remodeling sectors even as higher mortgage rates cool the broader housing market.

This article is for informational purposes only and does not constitute investment advice.