- theMReport.com - https://themreport.com -

Millennial Homeownership Shrinking

Analysis from The Washington Post [1], using data from the Federal Reserve, found that in 2019, millennials with an average age of 31 owned just 4% of real estate value across the nation. 

This is a stark contrast to the Baby Boomers, in 1990 with a median age of 35, owned nearly one-third of American real estate by value. 

The Post adds that many millennials are entering their prime home-buying years and are likely to make up some of the gaps by the time they are 35—but does not expect the generation to reach 30% of the housing market. 

Finances continue to be a struggle for the millennial generation. The Post states that for households headed by someone under the age of 35, median debt grew from $21,000 in 1989 to $39,000 in 2016. During that same period, the share of under-35 households with student loan debt more than doubled from 17% to 45%, and their median debt more than tripled—$5,600 to $18,000. 

Clever reported in January [2]that 84% of millennials in 2019 considered homeownership a major part of the American Dream. However, many still struggle to accomplish that dream. 

“As close to 5 million millennials turn 30 this year and enter their prime home-buying stage, demand for housing is ramping up. Riding a wave of favorable financing, younger buyers have embraced homeownership, drying housing inventory to two-year low,” said realtor.com’s Senior Economist Geroge Ratiu [3]. “With the generation’s rallying crying that there are not enough affordable homes, it is clear that there is ample room in the market for a significant increase in new construction, especially in the entry- and mid-level price segments.”

Clever states that millennials made up 45% of homebuyers in 2018, however, a study by the Urban Institute says that 10% fewer millennials own homes than their Generation X and Baby Boomer counterparts at the same age. 

Clever says that more than 25% of millennials planning to buy a home in 2020 have less than $1,000 savings. Also, 25% of millennials have more than $10,000 in debt but still plan to spend more than $200,000 on a new home. 

Seventy-percent of millennials plan to put down less than 20% on their new home.

Additionally, nearly a quarter of millennials said they hope to spend less than $100,000 on their home and nearly 20% will take on additional sources of income to help pay for a down payment.