There's a clear split forming in today's housing market. That split is between baby boomers and first-time homebuyers, or equity-rich homeowners and those who are shut out of the market.

I'm Kathy Fedke, and this is real estate news for investors.

This is Real Estate News with Kathy Fedke. According to the National Association of Realtors,

baby boomers now dominate both buying and selling. They made up 42% of all home buyers in

26. At the same time, first-time buyers dropped to just 21%. That's the lowest level ever recorded.

High mortgage rates are the big reason why. Rates have stayed above 6% for much of the past year,

according to Freddie Mac. That's made it much harder for new buyers to qualify, especially at

these high home prices. And many younger households are already stressed

with rent, student loan debt, and rising living costs. Meanwhile, baby boomers are sitting on large

amounts of home equity. Many have owned their homes for 15 years or more. When they sell, they

can often buy again with cash or large down payments.

That gives them a major advantage in this market.

Older millennials are also playing a big role.

They're now the highest earning group of buyers.

Many are move-up buyers, purchasing larger homes and raising families.

Their higher incomes are helping them stay active, even with elevated rates. But younger buyers are

getting squeezed out. Inventories tight, affordability remains a challenge, and that is keeping many

first-time buyers on the sidelines. We're also seeing some shifts in how homes are being purchased.

Multigenerational living is still elevated as families look

to share costs. And younger buyers, especially Gen Z, are entering the market in new ways with more

single buyers and unmarried couples. For investors, this trend matters. A market dominated by equity-rich

buyers can keep home prices supported, but fewer first-time

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