How Boomer Housing Dominance Is Forcing Real Estate Agents To Retool

Baby boomers’ decades long control of U.S. housing wealth is not just locking out younger buyers, it’s forcing significant changes to a real estate agent’s job description.

Top-producing agents told HousingWire the industry continues to pivot toward multi-generational advisory work.

Academic research has confirmed why; agents who cannot navigate trusts, estate planning and family gifting strategies risk becoming obsolete.

Jennifer Leahy — founder of the Jennifer Leahy Team at Compass — said the traditional first-time buyer is being redefined before her eyes.

“The most significant structural change we’re witnessing is the acceleration of intergenerational wealth transfer,” she said. “Many younger buyers are entering the market not solely based on their own income, but with meaningful financial support from their parents, whether through down payments, co-purchasing or early inheritance.

“That dynamic is allowing them to purchase at significantly higher price points than they otherwise could, particularly at a time when home values have risen dramatically and affordability has become more challenging. In many ways, it’s reshaping the definition of a ‘first-time buyer.’”

Pamela D’Arc – Compass’s No. 8 ranked agent in Manhattan by sales volume per 2025 RealTrends Verified – has seen the same trend playing out across New York City.

“Parents, spanning generations themselves, are increasingly stepping in as financial anchors for their children — whether they’re in their 20s or 60s — helping them secure a foothold in the city where the cost of entry feels insurmountable for many,” she said. “From co-purchasing to significant monetary gifts, and even the strategic formation of trusts, the role of family wealth in apartment purchases is undeniable.

“This phenomenon transcends price points and neighborhoods, touching nearly every corner of the market.”

Academic research shows historic imbalance

Recent research shows Baby boomers’ dominance in housing wealth reshaping the real estate market and contributing to long-term inequality.

A working paper from Harvard University and The University of Toronto found that demographic forces are a key driver of sustained housing pressures — helping explain why housing costs remain elevated despite affordability challenges and high demand from younger generations.

A second study for the Michigan Journal of Economics, “The Great Wealth Transfer and Its Implications for the American Economy,” examines how boomer-held housing wealth will shape future inequality.

As trillions of dollars are passed down, real estate plays a central role. However, the study warns that wealth transfers are highly unequal and tend to reinforce existing disparities.

Families who already own property are far more likely to benefit, making inheritance an increasingly important factor in homeownership access, research said.

A RAND study shows that median households would now be earning $29,000 more per year if income distribution for workers — as a share of annual GDP — returned to 1970s levels.

The Urban Institute’s “Wealth Gap Between Homeowners and Renters Has Reached Historic High” highlights the widening divide between owners and renters.

Research found that the median wealth gap between homeowners and renters was roughly $390,000 in 2022 — driven largely by rising home values — with the average wealth gap sitting at nearly $1.4 million.

Renters and family-backed buyers

Leahy acknowledged that not every younger person would benefit from family wealth. The result, she said, was a market splitting into two distinct tracks.

“There will absolutely be a segment of the population that rents longer, either by choice or necessity,” she said. “So, the industry isn’t shifting in one direction, it’s becoming more bifurcated. As a brokerage, we’re equipped to serve high-touch advisory for buyers using family capital and thoughtful guidance for clients navigating longer-term renting as part of their financial strategy.

“The market isn’t moving away from homeownership; it is redefining who gets to access it and how.”

D’Arc described New York institutions also preparing for this market trajectory.

“Even co-op boards, once notoriously rigid, are adapting,” she said. “The growing prevalence of trusts as purchasing vehicles reflects a recognition of this wealth transfer and its increasingly pivotal role in sustaining the market. This trend — born of estate planning and familial support — underscores both the enduring allure of urban living and the financial realities shaping how New Yorkers call the city home.”

The 10-to-20-year outlook – more inventory but uneven access

Over the next two decades, Leahy predicted a meaningful release of inventory — but not equal access.

“Over the next 10–20 years, I do think we’ll see a meaningful shift,” she said. “As baby boomers [continue to] age and homes begin to transition to the next generation, whether through sale or inheritance, we should see an increase in inventory. That will help rebalance the market and create more opportunity for younger buyers.

“However, access will not be evenly distributed. Buyers with family support will continue to have a significant advantage, while others may face longer entry timelines. So, while inventory may improve, affordability and access will remain key themes shaping transaction volume and pricing dynamics for the next generation.”

D’Arc emphasized that agents must actively guide clients through these complexities rather than simply facilitating transactions.

“I am making more of an effort to stay in touch with clients — buyers, sellers and renters — and help them solve their anxieties and concerns regarding buying or selling,” she said. “I do that by offering concrete solutions to anticipated issues, including capital gains, not knowing where their kids will land, housing options, etc.

“Often, there is misinformation, so I introduce them to tax advisors, estate attorneys and other professionals who can be of help.”

For real estate professionals, the message was clear: adapt to multi-generational advising – or risk being left behind.