Who Will Own America’s Homes Next? A Generational Shift in Real Estate

Realtor.com projects 13.9 million homes will transition out of older generations’ ownership and occupancy by 2036.

When discussing the housing market, we often focus on mortgage rates, property values, and the number of homes available for sale.

But another factor could have a substantial influence on housing over the next decade: the aging of America’s homeowners.

According to research published by Realtor.com on October 5, 2026, approximately 13.9 million homes currently owned and occupied by Baby Boomers and members of the Silent Generation are expected to transition out of their ownership and occupancy by 2036.

The implications extend beyond housing inventory. This transition could influence the types of homes available, where future generations choose to live, and how families approach their long-term real estate decisions.

A Generational Transition Already Underway

The oldest Baby Boomers are turning 80 in 2026, an age when homeownership rates historically begin to decline.

Over the next decade, more homeowners will face decisions about downsizing, relocating closer to family, moving into retirement communities, or passing property to the next generation.

Realtor.com estimates that approximately 1.39 million homes per year will transition out of ownership and occupancy by these older generations.

However, that doesn’t mean every property will become available for purchase.

Some homes will be inherited and retained by family members. Others may become rental properties or transfer through arrangements that don’t involve a traditional real estate listing.

Nevertheless, the scale of the transition is substantial.

What Types of Homes Will Become Available?

Perhaps the most revealing aspect of the research is the distribution of properties.

Approximately 9.9 million are three- or four-bedroom homes, representing more than 70% of the projected total.

Another 3.6 million are larger properties containing five or more bedrooms.

By comparison, only about 380,000 are smaller homes with zero to two bedrooms.

This distinction matters because the housing needs of first-time buyers and established homeowners can be quite different.

While the generational transition could eventually create more opportunities for families searching for larger properties, it may do considerably less to address the affordability challenges facing first-time buyers.

What Could This Mean for Spokane and North Idaho?

It’s important to recognize that these figures represent national projections.

Housing markets across the country differ considerably in their demographics, existing housing inventory, and demand.

Here in Spokane and North Idaho, the effects will depend on where older homeowners live, what types of properties they own, and how those homes transition to the next generation.

For example, a longtime homeowner in North Spokane may eventually decide to move into a smaller, more manageable property.

Another family may choose to retain a home rather than sell it.

Others may face decisions about maintaining, renovating, or selling a property inherited from a parent.

Each situation introduces different considerations, both financially and personally.

Why Planning Ahead Matters

For families considering what comes next, real estate decisions often involve more than market conditions.

A home may represent decades of memories, substantial accumulated equity, and one of a family’s most valuable financial assets.

Deciding whether to keep, sell, rent, or transfer that property can involve questions about maintenance, taxes, estate planning, and future housing needs.

Having these conversations before a decision becomes urgent can provide families with more flexibility.

Of course, questions involving inheritance, trusts, and taxation should be addressed with qualified legal and financial professionals.

Looking Toward 2036

Realtor.com’s projections suggest the generational housing transition will continue accelerating throughout the coming decade.

That doesn’t necessarily mean a sudden surge in available homes or falling property values.

Rather, it suggests that demographic changes will become an increasingly important part of understanding housing supply.

For buyers, sellers, and homeowners in Spokane and North Idaho, it’s another reason to look beyond short-term housing headlines and consider the longer-term forces influencing our market.

After all, real estate is about more than properties changing hands. It’s also about families moving into different chapters of their lives.

Josiah Boone
Windermere Real Estate
Spokane, Washington & North Idaho

Original research: 2026 Realtor.com Generational Housing Succession