Millennials hindered by student debt, a nationwide housing shortage, and fierce competition from older buyers backed by equity wealth have been glued to the sidelines of a volatile housing market for the last two years, and according to Insider, they may just have to keep waiting. Between July 2021 and June 2022, baby boomers made up the largest share of homebuyers for the first time since 2012, purchasing 39% of all homes sold compared with 28% of home purchases by millennials.
Millennials are the largest generation in the United States, but they’re having the hardest time becoming homeowners. In October 2022, roughly a third of homebuyers paid with all cash, a share made up of predominantly older buyers leaving little hope for younger competitors.
For better or worse, homeownership is the most popular form of wealth building for most American households. When millennials are forced to delay their home purchases and continue renting, they miss out on years they could have spent stacking up equity. Millennial homebuyers are also more likely than previous generations to use financial help from friends or family, further tilting an already uneven playing field.
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