A new report from Leaf Home [1] and Morning Consult [2] paints a picture of Boomer's “death grip” on housing is stalling millennials' homeownership and paints a contrasting picture of the 2024 housing market and homeownership trends across generations.
The report from the two companies found that 55% of boomers plan to spend at least 40 years or more in their homes with most indicating that they have no near-or-long term plans to ever move or renovate their homes. This leaves a looming underinvestment crisis that promises a future of deferred maintenance for their millennial inheritors.
High level data found by the companies includes:
- 73% of boomers have been in their current homes for 11 years or more
- Over half of their homes were built in 1980 or earlier with many never investing in renovations.
- Only 24% of boomers are preparing their homes for aging, with even fewer adding safety features.
- Three-quarters have never added safety or accessibility features in their homes.
- 62% say the same for making changes that allow them to stay in their homes longer.
- The majority of boomers have no plans to make any home improvements.
- Only 24% of boomers are preparing their homes for aging, with even fewer adding safety features.
- Three-quarters have never added safety or accessibility features in their homes.
- 62% say the same for making changes that allow them to stay in their homes longer.
- 51% of millennials do not expect to receive any inheritance; of those who do, 33% estimate the value to be $200K or less.
- 81% of boomers plan to leave an inheritance/estate when they pass away; more than half plan to leave $500K or less.
- 82% of boomers value their homes today at $500K or less, while 84% indicate that they purchased their homes for $300K or less.
"The housing market is caught in a generational tug-of-war. Boomers will soon face aging-in-place hurdles, while millennials will face the surprise of homes in need of major upgrades," said Jon Bostock, CEO of Leaf Home. "With an aging and ignored inventory of homes available in the next decade, we may see a crisis that will overwhelm the home improvement industry and strain the budgets of inheriting millennials, impacting the housing market."
The report also sheds light on millennial homeownership trends and sentiments. Nearly half believe the American dream of homeownership is dead and cite the main obstacles as the cost of housing and their salaries.
To view the full report, click here [3].