At age 30, millennial home ownership hit 42%, compared with 48% for Gen Xers and 51% for baby boomers.
Over half (55 per cent) of Millennials, 25–39 year olds, are homeowners compared with 62 per cent of Generation X and two thirds (66 per cent) of Baby Boomers when they were the same age.
Fourth quarter 2021 homeownership rates were highest for homeowners aged 65 years and over (79. %) and lowest for homeowners under 35 years of age (38.3%).
Baby boomers – those born between 1946 and 1964 – have steered economic trends for decades and have the highest rate of homeownership in the country, approximately 80 percent. Now, as the oldest members of the generation edge into their 70s, they are deciding to stay in their homes.
According to research, the baby boomer generation (men and women born between 1946 and 1964) accounts for 46 million of today's homeowners. The total combined value of the homes is $13.5 trillion.
Gen Z's Future in Real Estate Is Uncertain
Any generation's ability to own a home ultimately comes down to whether they can afford a down payment plus closing costs, qualify for a mortgage and handle the responsibility and costs that come along with owning a home,” said Scott Krinsky, partner at Romer Debbas, LLP.
They've reaped benefits from low interest rates and inflated housing prices, which increased the value of their assets. As such, many boomers have acquired enough to partake in the greatest wealth transfer in modern history, which will go to their children and philanthropy.
Silent Generation billionaires are the wealthiest on average across generations. With CEO of Berkshire Hathaway Warren Buffett and Zara founder Amancio Ortega among its ranks, Silent Generation billionaires are most likely to be in finance, fashion, and real estate industries.
Close to 60 percent of Gen Z respondents to a March 2022 Bankrate survey associated owning a home with achieving the American Dream. In that same survey, only 9 percent of Gen Z respondents reported never wanting to own a home.
Some millennials might hesitate before committing to buying a home — the cost of a mortgage, tighter lending standards and personal finance issues may all factor in.
Trends in home ownership
Home ownership data from the 2021 Census show a home ownership rate of 67%, down from 70% in 2006.
Millennials in a changing housing market
Their entry into the real estate market has looked different than that of older generations. Generally, millennials are buying their first homes later than their baby boomer parents.
A global study done in 2020 showed that the average age of first-home buyers in Australia is 36.
Generation Z has often been labelled as lazy, but that is due to the growth in the efficiency of life with more technology.
Even as the Baby Boomers continue to age, they divorce more than any other age group. Between 1990 and 2012, the divorce rate for 55 to 64-year-olds more than doubled.
Having a realistic expectation of cost is key, but Gen Z consistently underestimates how expensive it is to buy a home. Rocket Home's data shows that Gen Zers think their home will cost 38.5% less than the U.S. median home value - a misconception that might encourage them to save less than they really need to.
“Non-homeowners cite insufficient income, high home prices, and not being able to afford a down payment or closing costs as the most common barriers to becoming a homeowner,” Bankrate.com's chief financial analyst, Greg McBride, said in a statement.
At age 30, millennial home ownership hit 42%, compared with 48% for Gen Xers and 51% for baby boomers.
Gen Z is currently the smallest adult population in U.S.
Members of Gen Z age 18 or older only make up 10.3% of the total U.S. population, compared to the largest generation, millennials, who make up nearly 22%. Even once all of Gen Z are grown, they'll still be a smaller generation than millennials.
Average net worth by age
In other words, Americans at retirement age had a median wealth 19 times that of those in the under-35 age group. The average American net worth picks up after age 35. Americans between 35 and 44 years old had a median net worth of $91,110, six-and-a-half times that of those under 35.
Every couple divorces for their own reasons and that is certainly true of gray divorces. One theory as to why so many Baby Boomers are getting divorced is that their children, now in their 20s and 30s, are finally becoming financially independent, thus giving their parents the freedom to choose divorce.
More Assets.
Because baby boomers have accumulated significant assets, it's easier for them to divorce–there is enough money for both spouses to manage comfortably afterward. Marriages with few assets are difficult to terminate because there is no money left after the split.
Millennials earn more money than any other generation has at their age. But they still hold way less wealth, largely because cost of living has outpaced wage increases. Two recessions before the age of 40 and student debt haven't helped matters.