The Millennial generation has hit a new milestone: in 2022 they officially became a generation that has more homeowners than renters. Not only that, they hit this milestone two years ahead of schedule.
As a reminder, Millennials (Gen Y) were born between 1981-1996, making them 27-42 years old today. Their trend towards home ownership has been underway since 2017 when the oldest Millennials turned 36. Historically speaking, 36 is late in life to purchase a first home. However, this was a generation that was known for pushing big milestone events off until later in life.
Then, an unusual thing happened. During the pandemic many Millennials stopped renting and moved back in with their parents. Many were able to work from home, save on rent and accumulate money for a downpayment.
In 2022 Millennials also reached a historically high median income of $108,000. This was up 44% from just 5 years earlier. The combination of higher salaries, no rent, increased down payment savings and historically low mortgage rates (2021 – 2022) encouraged a frenzy of first time home buying for this generation. And there’s one other factor: 59% of Millennials received financial or downpayment support from their parents. It practically begs the question: was it FOMO or did the parents just want the kids out of the house?
In all seriousness, how does this accomplishment compare to other generations? Millennials tipped to a majority of homeowners at an average age of 34. Baby Boomers (1946-1964) hit the same mark at an average age of 33. Generation X (1965 -1980) must have been in more of a hurry; they hit the transition point at an average age of 32.
As the parent of a few amazing Millennials, this data makes me happy on several levels.
First, it shows that this generation is working as hard as and achieving at a similar rate as prior generations. And as more Boomers, Gen-Xers and Millennials chase their homeownership opportunities, the Ron Sitrin Team will be here to help them make good things happen.