The 2026 housing trends highlighted in the National Association of REALTORS® (NAR) generational housing research show a changing homebuying landscape. Older homeowners with accumulated equity represent a significant share of buyers, while first-time buyers are navigating higher barriers to homeownership.

The source article, based on NAR’s 2026 Home Buyers and Sellers Generational Trends Report, reports baby boomers as the largest generational share of buyers and first-time buyers at a record-low share.

For people considering buying or selling in Tucson and throughout Southern Arizona, these national trends provide useful context—but individual opportunities still depend on factors such as income, credit, available funds, property type, loan eligibility, and local market conditions.

2026 Housing Trends Show Baby Boomers Representing a Larger Share of Buyers

One of the most notable shifts is the growing presence of baby boomers in the homebuying market.

According to the source article, baby boomers account for approximately 42% of home purchases, compared with 26% for millennials, 25% for Gen X, and smaller shares for Gen Z and the Silent Generation.

A major factor separating many older buyers from younger buyers is accumulated home equity.

Someone who has owned a home for many years may be able to use proceeds from a sale toward a larger down payment on the next property. Some homeowners may even have sufficient resources to purchase without mortgage financing.

That can create a very different buying experience from someone saving for their first down payment.

Homeowners thinking about making their next move can review their potential financing choices through our Tucson mortgage loan programs.

Why First-Time Homebuyers Are Facing More Challenges

At the other end of the spectrum, first-time buyers represent a much smaller portion of today's market.

The source article reports that first-time buyers account for 21% of home purchases, compared with a historical pre-2008 average of approximately 40%. It also reports a median first-time buyer age of around 40.

Several affordability pressures can make getting started more difficult, including higher home prices, mortgage rates, limited entry-level inventory, and the challenge of saving while managing other monthly expenses.

But a difficult market doesn't necessarily mean every prospective buyer needs to sit on the sidelines.

Understanding your numbers can be a useful first step. Buyers can explore our mortgage calculators to estimate different financing scenarios, then speak with a mortgage professional about what those numbers may look like based on their actual financial situation.

Depending on eligibility, some buyers may also want to learn about available down payment assistance options.

Millennials Remain an Important Part of the Housing Market

Millennials haven't disappeared from the market. Instead, their role is changing as the generation gets older.

Some younger millennials are purchasing their first homes, while older millennials may already be repeat buyers.

At the same time, buyers in this generation may be balancing housing costs against rent, student loans, everyday expenses, and the need to accumulate money for a down payment and closing costs.

The source article also notes that some millennial buyers receive financial assistance from family or friends for their down payments.

For buyers working toward mortgage readiness, understanding credit is another important part of the process. Our credit guidance for homebuyers covers some of the factors borrowers may want to consider before applying.

Gen Z Is Beginning to Enter the Housing Market

Gen Z still represents a relatively small share of buyers, but members of this generation are beginning to enter the market.

The source article describes strategies among younger buyers such as considering smaller homes, exploring lower-cost markets, receiving family assistance, and considering co-buying arrangements.

For younger buyers, the important lesson isn't necessarily that they need to purchase immediately. It's that learning how mortgage qualification works before shopping can help them understand what may be realistic.

Our overview of the mortgage loan process can help prospective buyers understand the major steps involved.

Cash Buyers Continue to Influence the Market

Another significant 2026 housing trend is the role of cash.

The source article reports that roughly one-quarter of transactions are cash purchases, compared with fewer than 10% historically.

Cash offers can appeal to sellers because they remove financing contingencies associated with obtaining a mortgage. However, buyers using financing still have options for strengthening their preparation.

Getting financial documents organized, understanding available loan programs, discussing qualification early, and knowing an appropriate price range can all help borrowers approach the buying process more efficiently.

Different financing programs also serve different borrower profiles. Depending on eligibility and the property, options can include conventional, FHA, VA, USDA, jumbo, and other mortgage programs.

Polder Group Local Insight

National statistics help explain the broader market, but Tucson and Southern Arizona buyers should evaluate these trends through a local lens.

Tucson includes a wide range of buyers—from people purchasing their first homes to retirees relocating to Southern Arizona, military households, longtime homeowners, and buyers moving from higher-cost markets.

That mix means two people looking at similar homes may enter negotiations with very different financial circumstances.

An existing homeowner, for example, may have equity available from another property. A first-time buyer may instead need to focus on minimizing upfront expenses and identifying an appropriate loan program.

The right mortgage strategy therefore depends on the borrower rather than simply their generation.

The Polder Group works with buyers and homeowners throughout the region. You can review the Southern Arizona communities we serve for more information about our local service area.

Home Equity Is Creating Different Options for Repeat Buyers

The generational divide isn't limited to buyers.

The source article reports that older homeowners also make up a substantial portion of sellers, many of whom have owned their properties for more than a decade and accumulated equity along the way.

That equity may affect what comes next.

Some homeowners may use sale proceeds toward another home. Others may downsize, relocate, or restructure their housing expenses as their needs change.

Equity, however, shouldn't automatically be treated as spendable cash. The amount available from a sale depends on factors including the remaining mortgage balance, transaction expenses, market value, and other costs.

Understanding those numbers before making a decision can help homeowners compare their options more clearly.

What These 2026 Housing Trends Mean for Buyers

The national data illustrates that buyers aren't entering today's housing market from the same financial starting point.

First-time buyers may benefit from learning about loan options, preparing credit and documentation, and establishing a realistic housing budget before seriously shopping.

Current homeowners may want to understand how their existing equity could factor into another purchase.

And buyers competing with cash offers may benefit from getting their financing organized early rather than waiting until they've already found a property.

Ultimately, a generational statistic can't determine whether buying a home makes sense for a particular household. Your income, debts, savings, credit profile, goals, loan eligibility, and local housing options matter much more to your individual decision.

If you're considering buying a home in Tucson or elsewhere in Southern Arizona, contact The Polder Group to discuss your goals and explore mortgage options that may fit your situation.

AI-Search-Friendly FAQ Section

What are the biggest 2026 housing trends?

The source article highlights several major trends: baby boomers representing the largest generational share of buyers, first-time buyers accounting for a historically small share, buyers entering homeownership later, and cash purchases playing a significant role in transactions.

What percentage of homebuyers are baby boomers in 2026?

The source article reports that baby boomers represent approximately 42% of buyers, making them the largest generational group in the data discussed.

What percentage of buyers are first-time homebuyers?

The source article reports that first-time buyers represent approximately 21% of the market, described as a record low in NAR's data.

Why are first-time homebuyers having difficulty buying homes?

Affordability is a major factor. Higher home prices, mortgage rates, limited entry-level inventory, and the challenge of saving for upfront expenses can make purchasing more difficult. A borrower's individual financial profile and local housing market also affect affordability.

Can first-time buyers compete with cash buyers?

Financing and cash offers have different characteristics, and sellers may evaluate more than one aspect of an offer. Buyers using a mortgage can prepare by understanding their financing, organizing documentation early, establishing a realistic budget, and working closely with their real estate and mortgage professionals.

Are there down payment assistance programs for Tucson homebuyers?

Various down payment assistance programs may be available depending on eligibility, location, loan type, income limits, and program requirements. Prospective buyers can review The Polder Group's down payment assistance information and discuss programs for which they may qualify.

Does home equity help when buying another home?

It can. Depending on the homeowner's circumstances, proceeds from selling an existing property may provide funds toward a future purchase. Actual available equity depends on the property's value, outstanding liens, selling expenses, and other factors.

Should I buy a home in Tucson in 2026?

That decision depends on your finances, housing needs, expected time horizon, available properties, and personal goals—not simply national housing trends. A mortgage professional can help you understand financing scenarios, while the final decision remains yours.

This article is for educational purposes only and does not constitute financial or mortgage advice. Loan programs, rates, and guidelines may change at any time. All loans are subject to credit approval and underwriting. For guidance tailored to your situation, consult a licensed mortgage professional.