Inherited Homes Reach Record Share of Residential Transactions in 2025

Younger baby boomers are holding onto their houses longer and prefer to age in place, Cotality said.

A view of houses in a neighborhood in Los Angeles on July 5, 2022. Frederic Brown/AFP via Getty Images

A record 340,000 homes were transferred from owners to heirs in the 12-month period ending August 2025, according to a new report by property analytics firm Cotality.

Inherited homes accounted for an all-time high of 7.4 percent of all residential real estate transactions during that time frame, with California totaling nearly 18 percent of all homes passed to beneficiaries, Cotality reported on Jan. 19. Nearly 60,000 homes in the Golden State were handed down to beneficiaries, who benefit from favorable property tax laws on inherited properties.