Baby Boomers Take the Lead in 2025
The San Diego real estate market is buzzing with change, and a recent report from the National Association of Realtors® (NAR) highlights a surprising shift: baby boomers have reclaimed their spot as the largest group of home buyers. As a San Diego real estate broker, I’m diving into what this means for our local market, offering insights and actionable advice for buyers and sellers navigating this dynamic landscape. Read on to discover how these trends impact you, and don’t forget to share this post and visit our website for more expert guidance!
Summary of NAR’s 2025 Home Buyers and Sellers Generational Trends Report
The NAR’s 2025 Home Buyers and Sellers Generational Trends report reveals key shifts in the housing market:
Baby Boomers Dominate: Boomers (ages 60–78) now account for 42% of home buyers, surpassing millennials, who dropped to 29% from 38% last year.
Cash is King: Half of older boomers and 40% of younger boomers purchased homes with cash, while over 90% of buyers under 44 relied on financing.
Multigenerational Homes Rise: 17% of buyers opted for multigenerational homes, with Generation X (ages 45–59) leading at 21%.
First-Time Buyers Decline: Only 24% of buyers were first-timers, down from 32% last year, with younger millennials (ages 26–34) most likely to be first-time buyers (71%).
Sellers Skew Older: Boomers made up 53% of sellers, with homes typically selling at 100% of the list price after a median of 10 years of ownership.
These findings signal a market shaped by wealthier, older buyers and evolving household needs, with implications that ripple through San Diego’s competitive real estate scene.
What This Means for San Diego’s Real Estate Market
San Diego’s housing market, known for its high demand and limited inventory, is feeling the impact of these generational shifts. Here’s my analysis of the implications:
Boomer Buying Power Fuels Competition: With 42% of buyers being boomers—many paying cash—San Diego’s already tight market is seeing increased competition for premium properties, particularly in desirable areas like La Jolla, Del Mar, and Coronado. Cash offers give boomers an edge, often sidelining younger buyers who rely on financing. This trend could drive up prices for single-family homes, which boomers often prefer for retirement or downsizing.
Multigenerational Homes Reflect Local Needs: The rise in multigenerational home purchases (17% nationally, led by Gen X) aligns with San Diego’s diverse and family-oriented communities. Areas like Chula Vista and Poway, with spacious homes suitable for extended families, may see heightened demand. This trend also reflects economic realities—rising costs push families to pool resources, making larger homes with flexible layouts more appealing.
Millennial Challenges Persist: Millennials, now at 29% of buyers, face affordability hurdles in San Diego, where the median home price hovers around $1 million (based on 2024 data from the San Diego Association of Realtors). With 27% of younger millennials relying on family gifts for down payments, first-time buyers are struggling to compete, particularly in hot neighborhoods like North Park and Hillcrest.
Seller’s Market Stays Strong: Boomers dominate as sellers (53%), and San Diego’s low inventory keeps it a seller’s market. Homes are selling at or above list price, especially for well-maintained properties in high-demand areas. Younger millennials, selling after just five years, are capitalizing on strong returns, often achieving 101–110% of list price.
Supporting Data and Local Insights
To ground these trends in San Diego’s reality, consider these statistics:
Median Home Price: As of late 2024, San Diego’s median home price was approximately $1,005,000 for single-family homes, up 5.2% year-over-year (San Diego Association of Realtors).
Inventory Levels: Active listings in San Diego County remain low, with only 2.1 months of supply in Q4 2024, signaling a seller’s market (California Association of Realtors).
Cash Transactions: Nationally, 50% of older boomers paid cash, and in San Diego, cash deals accounted for 28% of home sales in 2024, particularly in luxury markets like Rancho Santa Fe (Redfin).
Multigenerational Appeal: San Diego’s suburban areas, like Santee and El Cajon, saw a 12% increase in demand for homes with 4+ bedrooms in 2024, ideal for multigenerational living (Zillow).
These numbers underscore the competitive edge of boomer buyers and the growing appeal of homes that cater to extended families, shaping San Diego’s market in 2025.
Practical Advice for San Diego Buyers and Sellers
Whether you’re buying or selling in San Diego, these trends call for strategic moves. Here’s how to thrive in today’s market:
For Buyers:
Work with a Local Expert: With 88% of buyers using real estate agents, partnering with a knowledgeable San Diego Realtor® is crucial. We can help you navigate cash-heavy competition and identify properties that match your budget and needs.
Explore Financing Options: If you’re a millennial or Gen Z buyer, consider FHA loans or down payment assistance programs to boost your purchasing power. Our team can connect you with trusted lenders.
Consider Multigenerational Homes: If affordability is a concern, explore homes in areas like Chula Vista or Escondido, where larger properties allow for shared costs among family members.
Act Quickly: With low inventory, desirable homes move fast. Get pre-approved and be ready to make competitive offers, especially in neighborhoods like Encinitas or Point Loma.
For Sellers:
Highlight Flexible Spaces: If selling a larger home, emphasize features like extra bedrooms or in-law suites to attract multigenerational buyers. Staging can make a big difference.
Price Strategically: With homes selling at 100% of list price, work with your agent to set a competitive price that maximizes returns, especially in seller-friendly areas like Carmel Valley.
Target Boomer Buyers: Market your property’s appeal to retirees or downsizers, highlighting low-maintenance features or proximity to amenities like golf courses or beaches.
Leverage Professional Marketing: 90% of sellers used agents, and professional photos, virtual tours, and targeted listings can help your home stand out in San Diego’s competitive market.
Stay Ahead with San Diego’s Real Estate Experts
The San Diego real estate market is evolving, with baby boomers leading the charge and multigenerational homes gaining traction. By understanding these trends, buyers and sellers can make informed decisions to achieve their goals. At Your San Diego Realty, we’re committed to being your trusted partner, offering personalized guidance and market expertise to navigate this dynamic landscape.
Did this post spark your interest? Share it with friends, family, or anyone looking to buy or sell in San Diego! For more insights and to start your real estate journey, visit our website or contact us today. Let’s make your San Diego dream home a reality!