The “Great Wealth Transfer” Is Coming to Real Estate

A Generational Shift in Real Estate: What It Means for the Years Ahead

Real estate is entering a quiet transition—one that isn’t driven by interest rates, inventory shortages, or market cycles.

It’s being driven by ownership changing hands.

Over the coming decades, a large share of homes across the U.S. will move from older homeowners to younger generations. Some of that transfer will happen through traditional sales. Much of it will happen through inheritance, gifting, and long-term planning.

This shift is already influencing how people think about buying, selling, and holding property. And while Gen Z is often mentioned in conversations about the future of housing, the reality is more layered—and more practical—than most headlines suggest.

Understanding what’s ahead matters not just for younger buyers, but for today’s homeowners thinking about timing, value, and long-term decisions.

What economists mean by the “Great Wealth Transfer”

Economists use the term Great Wealth Transfer to describe the large-scale movement of wealth from older generations—primarily Baby Boomers—to younger ones, including Gen X, millennials, and eventually Gen Z.

This wealth includes savings, investments, businesses, and real estate, which often represents the largest asset families own.

Over time, trillions of dollars in property value are expected to change hands. That doesn’t mean it happens all at once, and it doesn’t mean every household is affected the same way. But it does mean that real estate ownership in the U.S. will look different in the future than it does today.

Who is actually inheriting real estate right now?

Despite the attention on Gen Z, most inherited real estate in the near term is expected to go to Gen X and older millennials.

That’s largely due to timing. These groups are more likely to be at a stage of life where parents are downsizing, planning estates, or passing on property.

Gen Z is still part of the story—but for many, inheritance is farther down the road. When it does happen, it will look different depending on family structure, location, and financial planning.

Will younger generations inherit valuable homes?

Some will. Many won’t.

At a national level, the numbers are large. At an individual level, inheritance is uneven.

Even when a home is passed down, that doesn’t automatically mean long-term ownership. Inherited properties often come with real costs:

• property taxes

• insurance

• maintenance and repairs

• shared ownership among siblings

For many heirs, selling the home becomes a practical decision rather than an emotional one. Others choose to rent the property, refinance it, or use it as part of a longer-term financial plan.

The takeaway: inheritance creates options, not guarantees.

How this shift could reshape the housing market

As more homes move from long-time owners to heirs, several trends are already emerging.

1. More resale activity from inherited homes

Homes that no longer fit an heir’s lifestyle—or are located far from where they live—are more likely to come to market.

2. Changing preferences among younger owners

Younger generations often prioritize function, location, and maintenance over size. This may increase demand for:

• updated homes

• smaller footprints

• walkable areas

• lower-maintenance living options

3. Growth in shared and strategic ownership

Co-ownership, multi-generational living, and investment-focused ownership are becoming more common as affordability and flexibility matter more.

What this means if you expect to inherit a property

If you believe a home may be passed down to you someday, the most valuable step is clarity—early and simple.

Helpful conversations include:

• What is the long-term plan for the property?

• Who will be involved in ownership?

• Is selling, renting, or keeping the home realistic?

• What costs will come with ownership?

Having these discussions before a transition happens often prevents stress and rushed decisions later.

What this means if you’re a current homeowner

Even if you don’t think of yourself as “wealthy,” your home may be your most valuable asset.

Planning ahead allows you to:

• protect equity

• reduce uncertainty for loved ones

• decide whether downsizing or restructuring makes sense

• ensure your real estate supports your long-term goals

Real estate planning isn’t just about inheritance—it’s about control and intention.

Frequently Asked Questions

What is the Great Wealth Transfer in real estate?

It refers to the long-term shift of property ownership from older generations to younger ones through inheritance, gifting, and estate planning.

Is Gen Z inheriting most real estate?

Not yet. Gen X and millennials are currently the primary recipients, with Gen Z expected to be more involved later.

Will inherited homes increase housing inventory?

In some markets, yes—especially when heirs choose to sell properties that don’t fit their needs or location.

Ownership changes over time. Homes move through families, life stages, and priorities. Understanding that process helps homeowners and buyers make decisions with clarity—without pressure, and without rushing.

At Varity Homes, we spend a lot of time helping clients think through decisions before they’re urgent. If you’re considering how your home fits into your long-term plans, a thoughtful conversation now can make future choices far simpler.