Why Millennials Can’t Afford Homes, But Younger Gen Z Can

Episode #222

Millennials can’t afford homes, but somehow, their younger siblings, Gen Z, can. Even with over a decade more work experience than Gen Z, Millennials still feel priced out of the housing market. So how can the younger generation, only twenty-seven years at the oldest, already be on track to beat Millennials in the homebuying race, all while mortgage rates and prices are high, inventory is low, and inflation is eating away at Americans’ disposable income? We’ve got Redfin’s Chen Zhao back on the show to explain.

Today, we’re trying to answer one question: Who is buying all the houses? With younger generations struggling to buy and more Baby Boomers aging in place, real estate investors want to know their competition and who they may be selling their homes to. In this episode, Chen breaks down the data behind age trends in homebuying, plus shares why Millennials fell behind past generations.

But that’s not all. We’re getting into the changing landscape of the “buy vs. rent” debate and whether more renters now will mean fewer homebuyers in the future. Plus, with an aging Baby Boomer generation, will we finally see the “Silver Tsunami” of housing inventory hit the market as boomers “age in place,” especially with their large share of family-sized houses? Could our housing supply problems reverse if a sizable amount of inventory hits the market? We’re answering it all coming up!

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Why Are Millennials So Behind in Homeownership?
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00:00 Intro

01:03 Are Millennials Priced Out?

04:29 Millennials’ Lost Decade

07:32 Gen Z is Getting Ahead

10:55 Is Homebuying Overrated?

16:43 The Housing Shortage Could Reverse

19:46 Boomers Ageing in Place

24:48 Young People are STILL Buying!

[omnimoeish]

I think she has a pretty accurate interpretation of the housing situation but I feel like the title was clickbait.

[VR_investments]

Gotta migrate to the city next to your hometown, worked for me and my brother we moved to the city 50 miles south and we were able to get into a house

[pia]

When the talking heads announce that it is cheaper to rent than buy, do the numbers include renters typically moving once or every other year, rent increases? Moving trucks, companies, boxes, utility deposits and all the expenses that go along with moving. Also calculating your non renewable resource, time, to find a new place. It would be interested to see the REAL numbers.

[joshuaisrael]

National debt is a huge issue that we must start paying off for prices to lower. Until we take our debt seriously there are affordable cities out there. Midwest, Detroit, Toledo, Cleveland, Akron, Youngstown, Piittsburg, Erie, Buffalo, Rochester, Syracuse, Utica. Average proces in these above listed coties approximately 250k. Good luck out there!!!

[vsvbhlh]

People need o relocate different states and smaller towns! Otherwise be ready to rent for a very very long time

[FIRE_DrNinjaTurtle]

I am glad this is as linked as I missed this episode. Love it

[coled]

Most millenials I know already own nice houses, some multiples homes. I’m the only one I know that still can’t afford it, and probably never will.

I’ve been saving for 12 years but I missed my chance, as houses have doubled in price here in 4 years, and are still going up, despite higher interest rates and homeowners insurance.

It really sucks if you didn’t buy pre 2020 or even 2022.

[ricnyc]

Everything is owned by 2 companies: Blackstone and Blackrock.
This is not capitalism, there's no competition. If those companies see other companies growing, they buy them.

[yuriypono]

It’s hard to take someone’s opinion seriously when they don’t mention the immigration that is happening right now. Over one million a month. How is this not a factor 🤦‍♂️🤷🏼‍♂️

[idkmybffjill]

My favorite stat right now is, at age 25, a larger percentage of gen z owns a home than the boomers. Proving millennials are just the worst generation, ps I am a millennial

[chiltonporter]

Gen z aren't even 20 years old yet. How are they buying houses?

[uploadtime]

Typical story.. coffee at $6+ a pop, new car, new phone new, new new. All a wealth drain.

[tslonaker]

Another factor that is never accounted for.. the massive illegal immigration that goes on in this country. Like it or not, those people will need housing and jobs. Effectively lowering wages and raising the cost of housing.