The “Baby Chaser” Boom

Multi-generational housing demand has the power to shape the market.  

Understanding the mindset of current homebuyers is the key to unlocking your full potential as an investor. Knowing the ins and outs of who is buying a home and why can set your properties up for success before they’re even for sale. And current trends are pointing toward multi-generational moves, with families within different households wanting to stay near each other.  

What we’re seeing, however, is a shift in the industry. Instead of the younger generation moving and following their parents, the market is now seeing the older generations retiring and deciding to follow where their children decide to settle down. For investors to take advantage of this opportunity and to stay up to date, they need to understand what exactly the Baby Chaser Boom is and how it’s going to affect major housing markets.  

What is the Baby Chaser Boom Trend?  

In the real estate industry, the “Baby Chaser Boom” refers to a migration pattern in American households where parents are following their adult children as they move to settle down and start their own families. When these parents retire, they plan to do so near their children and grandchildren, keeping family ties strong and offering support as needed. The adults who are moving then have the flexibility to move where it makes sense for their family.  

The Baby Chaser trend highlights markets in the country that offer a surplus of career opportunities, along with family-first priorities including educational opportunities and healthcare options. It’s also important to note the role that housing affordability plays in this trend. Accessible homeownership options also give more opportunities to younger adults and their parents to follow them. 

What the Baby Chaser Boom Means for Investors  

For investors, this Baby Chaser trend is a demand signal. Multi-generational household demand means bigger floorplans, ADUs, and more rental flexibility. With two waves of buyers hitting the same markets, there is a potential for a period of sustained appreciation in these areas.  

According to Zonda’s annual proprietary Baby Chaser Index, 1 in 4 baby boomer parents say that they plan to retire near their kids or grandchildren.  

This is a massive wave of buying potential that is now following the younger generation, and not the other way around. The markets that are already on investors’ radars for fix & flip and new construction projects are the same ones seeing this dual growth. Investors naturally follow opportunity, so it’s no wonder that we’re already seeing this trend correlate with current investments. 

How the Baby Chaser Trend is Influencing the Market 

While millennials are the largest generation in the U.S., their share of home buying continues to dwindle year-over-year. According to the National Association of Realtors, millennials make up 26% of the country’s homebuyers in 2026 (down from 29% last year), while baby boomers remain the same as last year, sitting at 42%. 

Chief economist for Zonda and NewHomeSource, Ali Wolf, makes note of the power this Baby Chaser trend has and how it can shape current markets. “Demographic trends are a critical factor in understanding housing demand and fostering economic prosperity. No two cohorts are more influential today than millennials and baby boomers,” she said. “Millennials, the largest living generation, are in their prime working years and are currently active homebuyers. Baby boomers, their parents, possess the largest share of assets and wealth. Together, these two generations will significantly shape housing trends for years to come.” 

Top 5 Baby Chaser Markets for 2026 

When looking at the 2026 Baby Chaser Index, some markets clearly stood out against the rest. Here are the top 5 Baby Chaser markets for 2026, so you can see why investors are moving fast in these markets. 

• Raleigh, NC. With a boomer migration rate that has doubled year-over-year, Raleigh has topped NewHomeSource’s Baby Chaser Index for 2026 and ranks #1.  
• Nashville, TN. Much like other markets on this list, Nashville offers a variety of career opportunities and quality-of-life benefits that appeals to younger buyers and their older parents.  
• Houston, TX. Houston broke into the top 5 for the first time this year, driven largely by its millennial population growing at more than double their historic rate, according to Builder. Houston is a favorable market for working-age individuals, offering a healthy combination of affordable housing and a diversified labor market. 
• Dallas, TX. Texas markets continue to dominate the rankings, with Houston and Dallas ranking the highest. Other notable markets in Texas, for similar reasons, includes Austin and San Antonio.  
• Charlotte, NC. Supported by strong migration from the East Coast and its reputation as a Southeastern financial hub, Charlotte serves as a half-way point for those who originally moved to Florida and then decided to move closer to the East Coast or Midwest.  

Pre-Qualify with Asset Based Lending Today  

Whether you want to fund a fix and flip or start your project from the ground up, we’re ready to work with you. Our experienced local teams can walk you through the entire investment process—from setting your investment goals to securing financing to closing the deal. With over 10,000 projects funded, Asset Based Lending has the experience and capital you need to scale your success. 

Ready to take the first steps? Get started today by filling out our pre-qualification form. It’ll take less than five minutes to submit, and then one of our loan experts will follow up with you in a day or two. If you’re deal is a right fit for ABL, we’ll discuss next steps and work with you every step of the way—and then you’ll be closing in as few as 20 days! 

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