Baby Boomers Are Snatching Up Starter Homes With Cash, Leaving First-Time Buyers Behind
It’s no secret that things are changing in the world of real estate. While 2020 may have superheated the real estate market, transforming the ways (and locations) many people shopped for homes, it seems like 2026 is seeing another shift.
Unfortunately, for first-time homebuyers, that shift may be working against them, according to one real estate agent. TikToker @ryanwalker407 says that he’s seeing new trends happening locally that he believes are painting a bigger picture about what’s going on across the country, and it has a lot to do with a potential generational shift in the market.
Starter homes are apparently becoming very popular among Baby Boomers who are looking to cash out on their home’s equity so that they can downsize. This could limit the options available to first-time homebuyers and make it harder for them to win bidding wars.
That’s because the Baby Boomers are coming to the table with cash offers that some first-time buyers may struggle to match. The people in the comments seem to agree with Walker’s assessments, saying that they are seeing similar things where they live as well.
Real Estate Agent Describes ‘Whispering’ Market
@ryanwalker407 The Real Estate market is whispering clues right now to the people paying attention. #realestate #housing ♬ original sound – Benjamin Ryan Walker
According to Walker’s post, he’s noticing an influx of Baby Boomers who have opted to sell their homes so that they can cash in on their equity. They are then using the proceeds to make all-cash offers on smaller homes.
He said a recent listing was a perfect example of this scenario, where around 25 groups of people came through to tour the home. “Out of those 25, I think 90 percent of those people were retired and looking to downsize,” he said. “A year ago, 90 percent of those buyers would’ve been either first-time homebuyers or buyers in their 30s.”
People Shared Their Own Stories
Many commenters shared how much their home values had increased. “My husband and I bought our house in 1998 for $153,000,” one person wrote. “That house is now worth $800,000 plus. Young adults can’t afford to buy houses. Something needs to change.”
“We bought a starter home, or what was listed as one anyway,” another person added. “I have been here 12 years and probably will be here forever, because it’s paid off.”
The idea of a starter home has changed over the years. According to Zillow, more than half of the states in the U.S. have listings that are considered starter homes—Zillow defines them as homes in the lowest third of home values in a given region—that are worth $1 million or more, highlighting how unaffordable it is for first-time homebuyers in certain areas.
Add into the equation Walker’s observations, and it’s no wonder so many people are feeling priced out of the market right now.
