Millennials have reached their peak home-buying years. On the other hand, boomers are starting to buy second homes or downsize. Now that the housing market is slim, millennials and boomers are at a standoff for purchasing the same houses. Both generations are in the market for a new home with few choices. Because of this, the competition for homes is at an all-time high for the older and younger generations. Learn more about the housing market competition and millennials vs. boomers.
Housing Market Details
Boomers have had the upper hand in the home-buying game in recent years. Research shows that about 39% of homes sold from 2012 and higher have been boomers. For millennials, their market share has decreased to about 28% from the years prior. There are many factors tied to these numbers. For boomers, they are wealthier than the younger generation, which puts them at an advantage in buying homes. They also have the upper hand due to already having spent years with home equity. Because of this, the boomers are more likely to get acceptance on home ownership if it comes down to a bid between the boomers and the millennials.
Millennial Struggles with Home Ownership
Due to the current state of the economy, the millennial generation has been forced to keep renting homes rather than purchasing them. Millennials are also more likely to use financial assistance rather than being able to save for a home down payment. It is harder for millennials to save up to purchase a home due to low-paying jobs and higher living expenses. The economy has gotten worse in recent years and has not given millennials much chance when buying a home. This generation they have had a much more difficult time gaining wealth than their parents’ generations. As a result, there were not enough homes to meet the demand for the millennials.
The housing market competition with millennials vs. boomers is tricky. When it comes down to it, the housing market is not a battle of generations but rather the differences in the financial aspects of each generation. Additionally, the housing market needs more homes to go around now. Unfortunately, this makes it hard to search and purchase an affordable home. Finding the right realtor is a big step in finding an affordable home that fits your budget. If you are in the market for a new home, call me, Nechelle Robinson, Realtor. My mobile number is 410-404-3889 and in the office you can reach me at 443-906-3840