Here’s something else to blame on the Boomers: the housing market. Recent data shows Boomers have it on lock, owning twice as many large homes as Millennials with kids. And it’s not about to change.
Here’s Five Fast Facts About the Boomer Housing Market Domination:
- 👴🏻 Boom - A new study shows that empty nest Baby Boomers own 28% of the country’s large homes (three or more bedrooms), while Millennials with kids own just 14%.
- 🏠 Bing - The rental landscape is the complete opposite. Millennials with kids take up 24% of large home rentals, while Millennials without kids come in at 11.6% and 11.4% of empty nest Boomers rent.
- 👶 Bam - So what’s the problem here? Well, Millennials make up 28% of the country’s adult population. Baby Boomers are close behind at 27%. You’ve got two generations wanting the same stuff.
- 🏡 Pow - There’s no reason for Boomer homeowners to sell, since 54% of them have no mortgage. The median cost of homeownership for that group is a shocking $612. For those with a mortgage, almost all of them have a much lower interest rate than what’s currently available.
- 🏚️ Biff - If those Boomers do decide to sell, the new buyers are going to have to make a lot of upgrades: 73% of them have been in their current homes for 11 years or more. Over half of those homes were built in 1980 or earlier, and many owners have never invested in renovations, nor do they plan to.
🔥Bottom line: Millennials will be the largest group of homebuyers for some time. But with the current landscape, young families will have to adjust their expectations and shoot for a smaller home instead. It’s not going to get better anytime soon.
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