The Great Wealth Transfer: How It’s Shaping Massachusetts Real Estate

In the coming decade, the largest transfer of wealth in U.S. history is already underway — and real estate sits right at the center of it. Across the country, Baby Boomers and older generations are beginning to pass down trillions in assets — especially homes and property — to Gen X, Millennials, and beyond. In fact, estimates suggest tens of trillions of dollars in wealth will change hands over the next 20+ years as heirs inherit assets previously accumulated over decades.

Nationally, reports show that Gen Xers and Millennials alone are expected to inherit roughly $4.6 trillion in real estate over the next decade, with about $2.4 trillion located right here in the U.S. 

But Massachusetts isn’t like the rest of the country. Unique regional dynamics — from high home prices to tight housing supply — mean the effects of this wealth transfer will look and feel different here than in other markets.

1. Why the Wealth Transfer Matters for MA Housing

Massachusetts has some of the highest home values in the U.S., especially in Greater Boston and popular suburbs. Over the last few years, home values have climbed significantly — making even smaller homes costly compared to many other states.

That matters because:

• Equity is a huge part of generational wealth here. Most long-time homeowners in MA have lived through decades of value appreciation, meaning many families hold significant wealth locked into their homes.

• Younger buyers struggle to enter the market. Due to high prices, housing costs often outpace wage growth in the state — making it harder for first-timers or low-to-moderate income buyers to save for down payments without help.

  
  

This is why the wealth transfer matters: inheritance — whether direct gifts, property, or financial support from parents — can unlock opportunities for younger adults who otherwise might remain sidelined in a market this expensive.

2. Boomers Are Staying Put — Which Keeps Supply Tight

One big twist in Massachusetts is that many older homeowners aren’t selling yet. A mix of factors — low historical mortgage rates, high current taxes, and limited affordable downsizing options — means many Boomers choose to “age in place” instead of moving or selling.

That matters for the market because:

• It constrains for-sale inventory, especially of family-sized homes young buyers want.

• With fewer homes moving from one generation to the next through market transactions, younger buyers face even stiffer competition.

  
  

So even though Massachusetts will eventually see significant wealth shift across generations, the timing and pace of that shift won’t be instantaneous — especially if Boomers hold onto homes longer.

3. Changing Buyer Patterns in the Commonwealth

The ways families use inherited assets — and the types of homes they seek — are evolving. Massachusetts is no exception:

Multigenerational Buying & Living

Across the U.S., more families are choosing homes that accommodate extended relatives — especially where housing costs are high. Multigenerational living can help spread expenses, create support systems, and make ownership more achievable.

Given MA’s cost structure, this trend may stick around longer here than in cheaper regions.

Delayed First-Time Buyers

Many Millennials now buy their first homes later in life compared with past generations — nationally pushing the median age of new buyers into the late 30s or beyond. Higher prices, student debt, and limited starter home options all play a role.

In Massachusetts, where prices are high and entry-level stock is scarce, generational assistance through inheritance or gifting can make a real difference in timing and outcomes for buyers still chasing entry.

4. What the Wealth Transfer Means for Massachusetts Homeowners & Sellers

For Massachusetts homeowners, the Great Wealth Transfer is already influencing demand — especially in markets with long-held equity and limited inventory.

High-equity neighborhoods remain resilient. Homes in desirable Massachusetts communities continue to attract interest because much of the state’s generational wealth is tied up in property. Families with deep equity are thinking long-term about how — and when — that value eventually transitions.

Estate and family-driven sales will matter more. As older homeowners eventually downsize or pass homes to heirs, some properties will come to market through estate situations or quiet family decisions. Not all of these homes will be publicly listed right away, but they will shape future inventory.

Younger buyers may re-enter the market with support. Down-payment gifts, inherited equity, or family-assisted purchases are allowing some Gen X and Millennial buyers to move sooner — particularly in price points that previously felt out of reach.

That said, inherited homes aren’t always a long-term solution. Rising property taxes, insurance, and maintenance costs mean some heirs choose to sell rather than hold — especially if the home no longer fits their lifestyle or budget.

5. A Practical, Forward-Looking View for Buyers and Sellers

This generational shift doesn’t require dramatic action — but it does reward thoughtful planning.

For Buyers

• Have open, early conversations about family support if it’s on the table. Gifting, inheritance, or shared ownership can change affordability — but timing and structure matter.

• Don’t rely solely on future inheritance. A balanced approach that includes saving, debt management, and realistic timelines puts buyers in a stronger position regardless of what comes later.

  
  

For Sellers & Homeowners

• Homes with updated systems, efficient layouts, and flexibility for multigenerational living are increasingly appealing — especially in higher-cost Massachusetts markets.

• While generational turnover will create future inventory, it’s likely to happen gradually. Today’s market is still shaped by tight supply and long-term ownership.

  
  

Bottom Line

Massachusetts isn’t just watching the Great Wealth Transfer — it’s experiencing it in real time, in a market where equity is high and available homes are scarce.

While national headlines focus on trillions of dollars changing hands, the local impact will depend on how families here choose to hold, share, or sell real estate amid rising costs and limited inventory.

For buyers and sellers alike, understanding where wealth is moving — and how housing fits into that equation — isn’t just interesting. It’s essential to navigating the Massachusetts market today and in the years ahead.