With money from having owned a home before, some older participants in the real estate market can get what they want:

The Zinnick’s aren’t alone: Older buyers are prevailing in America’s hot housing market. This year, the median age for a repeat buyer – someone who has bought a home before – was 58, according to data released Monday by the National Association of Realtors. That’s down just a smidgen from last year’s record of 59, but it’s up significantly from 36 years old in 1981, when NAR began conducting its survey.

Lately, grandparents have been edging out younger buyers who are struggling to get into the market for the first time. Nowadays, first-time buyers make up 32 percent of the market, well below an average of 38 percent since 1981, according to NAR. They’re also more likely to be in their mid-30s today, in contrast to their late 20s in the early 1980s…

There are many reasons. For starters, older buyers are also likely to be selling a house, which provides them fresh cash. Indeed, the typical home seller was 60 years old in 2023, according to NAR, the same as last year.

And with so few homes available, sellers often go with the potential buyer making the most attractive offer – be it a large down payment, stellar credit or all cash. There, too, older buyers have a leg up…

That often leaves seniors and aspiring first-time buyers competing for similar types of homes – just a couple of bedrooms, not too much upkeep. Usually, there’s a clear winner.

If you have the wealth from owning a home, you can then put that wealth into something else – if you so choose. So, if housing values have tripled to quintupled, there is plenty of resources to apply to a new home. The home gets turned into a new home (and perhaps leftover cash). One advantage begets another, what some have called The Matthew Effect.

In theory, this is how Americans expect homeownership to work: you purchase a home, you get to live in the home, and then at some point you cash out because the home offers a strong return on investment. But, as this story notes, this is not a good story for everyone. Others who might be competing in the housing market may not have the same resources. Or, not mentioned are seniors who have not owned homes or owned properties that did not appreciate much.

Is this just a blip in the grand scheme of things because of unique conditions in the housing market? Or, is this a long-term change where those who bought homes in the past now reap certain rewards? The outcome of this could help influence the life outcomes of a lot of Americans in the coming years.