The generation gap in homeownership is a topic of interest to many people. Many factors can contribute to the difference in homeownership rates between younger and older millennials. For example, the age group of younger millennials is between 23-31 years old for a generation born between 1990-1998. On the other hand, older millennials are the age group between 32-31, born between 1980-1989.
The generational homeownership gap study affects property markets worldwide, as the decision-making process to purchase homes and real estate are similar.
Generational Difference in Homeownership
Younger Millennials are more likely to be renters than homebuyers. This is because they are less likely to have the financial stability and income needed to purchase a home. Older Millennials, on the other hand, tend to be homeowners who have more financial stability and higher revenues.
A study by the National Association of Realtors found that in 2022, only 36% of people aged 18-34 were homeowners. This is compared with 65% of people aged 35-44 and 76% of people aged 45-54 who were homeowners.
While there is a significant difference between younger Gen Y and older Gen Y in terms of homeownership rates, it’s important to note that both groups can still buy the property or purchase a house for sale if they want it enough.
The most obvious factor is the economy. Younger Millennials entered the workforce during a time when there was a significant economic recession, so they may have had more difficulty saving for a down payment. Conversely, older Millennials entered the workforce when there was an economic boom, so they may have had less trouble keeping a down payment.
The study represents data collected by age groups into three categories.
- Gen Z buyer: age (18 – 22, year born 1999-2011)
- Younger Millennials: generation (23-31, born 1990-1998)
- Older Millennials: generation (32-41, born 1980-1989)
We will dive right into representing the difference between younger and older millennials, as this is where the main parameters and metrics are discussed. Comparing these two main generational groups is where the main buyers are in real estate for all types of markets. Whether low …