T
he US housing market is facing a significant shift as baby boomers, who hold the majority of homeownership and real estate wealth, begin to age. This demographic holds 37% of U.S. homes, despite making up only 20% of the population, according to census data. They also control a substantial portion of vacation homes and rental properties that generate income.

    Millennials, on the other hand, are struggling with affordability challenges and limited supply, with nearly half (45%) not owning a home. However, a shift is underway as boomers prepare to transfer their wealth to younger generations through inheritance or financial flexibility. UBS estimates that boomers collectively hold around $17 trillion in home equity, which could be unlocked as they consider downsizing, relocating, or selling properties.

    While many boomers are not planning to sell anytime soon, concerns about aging in place and maintenance costs may prompt some to reconsider their plans. If they do decide to sell, most expect to walk away with significant profits, with two-thirds anticipating gains of at least $100,000 and 1 in 10 expecting earnings of $500,000 or more.

    The question is not just when boomers will pass on the keys, but how. The coming decade will shape millennial homeownership and the broader housing market as younger generations inherit properties, receive down payments, or take over investment properties from their aging parents.