Baby boomers are setting up a showdown with millennials, aging in place and plunking down hundreds of thousands on renovating their homes

The housing landscape is experiencing a generational clash between baby boomers and millennials. Baby boomers, who account for over one-third of all homeowners, are largely mortgage-free and not inclined to sell due to the steep rise in mortgage rates. Meanwhile, millennials face a highly competitive housing market with high costs and limited inventory.

Baby boomers often reside in larger homes, which are in demand from millennials starting families. According to a 2024 Redfin analysis, empty-nest baby boomers own 28% of the country’s largest homes, while millennials with children own only 14%. Despite this, baby boomers remain committed to aging in place and are making significant renovations to their homes for safety and comfort.

Many have spent tens of thousands of dollars on these home improvements, opting to stay and upgrade rather than move due to the lack of affordable retirement housing options. This trend of baby boomers renovating their homes has become a significant aspect of the housing market, with universal design elements becoming more common.