Despite the economic roller coaster that has defined much of their adult lives, most millennials now own a home.
Key Details
- It was long speculated that millennials, those in the 25- to 39-year-age range, would never own a home due to greater debt, lower pay, and more expensive housing than the generation before.
- However, millennials have surpassed expectations as more than 50% own a home, The Daily Upside reports.
- Over half of millennials purchased housing before or during the pandemic when interest rates and housing prices were low.
- However, the other half that decided to wait may now fall into the category that may never be able to afford a home.
Why it’s news
Millennials have lived through the financial crash of 2008, the chaos of COVID-19, and now the economic uncertainty of high inflation and soaring interest rates. Potential home buyers today must be ready with larger down payments, pushing many millennials out of the market.
However, before the current high mortgage rates and prices in the housing market, buyers had the opportunity to make relatively affordable purchases. Lower home prices and interest rates in the last decade have made home-buying more affordable for first-time buyers. Those who bought before the pandemic had more affordable options than those who started house hunting after.
Still, fewer millennials aged 30 own a home than the previous generations did at that age. Around 42% of millennials made a home purchase by 30, compared to 48% of Gen Xers and more than half of Baby Boomers who owned a home by that age.
But the millennials who did not take the plunge before the pandemic say they are pushed out of the housing market for good. In a 2022 survey from Apartment List, around 25% of millennials reported no plans to buy—they would rent forever. That number has grown from 2019, when just 14% had no intention of buying.
Location has played a vital role in how many millennials can afford a home. Those who live in more affordable states, like the Midwest or the South, are more likely to own a home than their counterparts living in more expensive coastal states, The Daily Upside reports.
