Baby boomers are hanging on to their large homes even if they don't need the space — here's how that decision is hurting young American families

“There’s unlikely to be a flood of large homes hitting the market anytime soon,” Redfin senior economist Sheharyar Bokhari said. “Logically, empty nesters are the most likely group to sell big homes and downsize. They no longer have children living at home and don’t need as much space. The problem for younger families who wish their parents’ generation would list their big homes is that boomers don’t have much motivation to sell, financially or otherwise.”

Meanwhile, many young families seeking extra space have resorted to renting. Millennials with children represent a quarter (24.8%) of three-bedroom-plus rentals in the U.S., according to Redfin, the largest share of any generational category.

Overall, empty-boomers take up at least 20% of the large housing market everywhere in the U.S., Redfin says.

So, do millennials have a right to be upset at their parents for being squeezed out of the real estate market?

Home economics

This trend of older empty nesters dominating the large home market is fairly new. A decade prior, young families (then Gen X) were just as likely (19%) as empty nesters (then the silent generation) to own large homes (16%), Redfin says. But one thing that’s remained relatively constant is that baby boomers with no kids owned the largest share (26.5%) of three-bedroom-plus homes.

High prices, elevated mortgage rates and a housing shortage has made buying a home a challenge for younger generations — even for the rich. Redfin’s calculations show that 2023 was the least affordable year to buy a home in the company’s records.

Baby boomers are sitting pretty and have little motivation to move from a position of strength. Redfin data shows that 54% of boomer homeowners don’t have mortgages. Of those who do, they’re locked-in at a much lower percentage than current rates, which are hovering at around 7%.