Baby boomers hold on to their homes until death do them part.
According to the New York Times, members of the cohort, born between 1946 and 1964, have owned more real estate for 20 consecutive years than any other generation – with no end in sight.
A few years ago, that title was held by the “silent generation,” which tended to sell real estate at a more mature age and move into extended families or homecare, paving the way for the baby boomers who took the lead in 2001. in the field of real estate.
Some may wait until retirement to sell, while others would rather leave their estate to do the job. In the meantime, the younger generation is left with the shorter end of the stick.
Generation X (born between 1965 and 1980) makes up about 24 percent of home buyers, according to the NAR 2021 Home Buyers and Sellers Report on Generational Trends. Roughly the same number were for sellers, indicating a gradual increase in profits from increased sales, rather than a larger increase in long-term real estate wealth.
In all fairness, Generation X has been building up their real estate wealth, but at a very slow pace. In 2011, representatives of this generation owned approximately 21 percent of real estate, according to the Times, citing data from the Federal Reserve. A decade later, they gained only 10 percentage points, still lagging behind the 44 percent boomer share.
Millennials are missing from the equation, according to the data, whose share of real estate wealth has actually declined slightly, from 11.3 percent in 2020 to 11.2 percent this year.
They don’t look like they have many other options to choose from: entry-level home offerings, which Freddie Mac defines as less than 1,400 square feet, are at their lowest in 50 years, insider reported…
The publication adds that in the late 1970s, about 418,000 entry-level homes were being built annually. In 2020, that number dropped to 65,000.
With several houses available and if not enough new homes are being built, young home buyers may simply have to wait in line.