Most Millennials are currently reaching their peak homebuying age, but as downsizing Baby Boomers seek out smaller, more affordable homes, younger generations are battling a widening shortage of entry-level housing. In a pricier housing market, Boomers are better equipped to compete for starter homes, Fortune reports.
According to the Bank of America Institute, Baby Boomers are eight times wealthier than Millennials, with a net worth of $73 trillion compared with around $9 trillion accumulated by young buyers just entering the for-sale market.
Much of the baby boomer generation’s wealth is already held in housing equity, which can be leveraged for new homes closer to family and friends. That’s the upper hand that millennials don’t quite have yet, at least comparatively. While millennials held around $5.5 trillion in real estate assets at the end of 2022, boomers held almost $19 trillion. (It can also be pointed out that the boomer desire to be closer to their children and grandchildren is keeping those family members from building their own housing wealth.)
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