Fed Hikes Rates as Boomers Tighten Grip on US Housing Market

Baby boomers, aged 61 to 79, now represent 42% of all home buyers and 55% of sellers. Because this cohort often holds full equity in their current residences, many execute cash-only transactions, insulating themselves from the tightening mortgage environment. This demographic dominance coincides with a broader cooling of international interest; foreign investment in US residential real estate has hit its second-lowest level since 2009, with transaction volumes falling to $45.3 billion annually.

Despite high interest rates, regional pockets of the market remain insulated. Florida has recorded 11 consecutive months of year-over-year sales growth, fueled by a surge in luxury transactions. Sales of million-dollar condos and townhomes in the state climbed 31% compared to 2025, while the state continues to monopolize retirement rankings, claiming eight of the top ten spots in Niche.com’s latest analysis. Meanwhile, legislative efforts are underway to provide relief, led by Congressman Tom Kean, Jr.’s MOVE Act, which seeks to introduce portable mortgages that allow homeowners to carry existing terms to new properties.

Infrastructure milestones also highlight the luxury sector, with the completion of the 950-foot Cipriani Residences in Miami. The project features a two-unit penthouse collection priced at $53 million, asserting its status as the largest residential structure south of Manhattan. While coastal hubs remain active, migration data consistently points to South Carolina as the top relocation destination for Americans, marking the seventh consecutive year the state has led preference polls ahead of Idaho and Florida.