More baby boomers are buying homes in America than people under 35 — why that’s a risky reality for everyone

Core Insights - The current housing market presents significant challenges for younger generations, particularly millennials and Gen Z, who are struggling with stagnant wages, inflation, high interest rates, and soaring house prices, leading to a decline in home ownership rates [3][4][5] - The average age of first-time homebuyers has increased to 38 years in 2024, with baby boomers making up 42% of homebuyers compared to only 15% for younger millennials and Gen Z combined [4][5] - Many young Americans are exploring alternative ways to build equity without home ownership, such as investing in various financial instruments and developing strong savings habits [7][9][10] Group 1: Housing Market Challenges - A survey found that 33% of younger millennials received financial assistance for down payments, and only 45% claim financial independence from their parents [5] - Most millennials and Gen Z earn significantly less than the $114,000 average salary required to purchase a home [4] - The housing market is described as a "doom loop," with sales declining while prices continue to rise [3] Group 2: Demographics of Homebuyers - The average American has $313,000 in home equity, which is increasingly out of reach for younger generations [2] - The average age of first-time homebuyers has jumped about a decade since the 1980s, indicating a shift in the demographic landscape of homeownership [4] - Baby boomers are planning to age in place, further limiting housing options for younger buyers, with 78% intending to stay in their homes [5][6] Group 3: Alternative Equity Building Strategies - Young individuals are encouraged to create a savings timeline and develop strong savings habits to prepare for future home ownership [7][8] - Investing in 401(k)s, IRAs, and other financial instruments is recommended as a way to build wealth without home ownership [9][10] - Renting can be a strategic choice, allowing individuals to save more aggressively and invest the difference, as highlighted by various financial experts [10][11]