On The Market

222: Boomers Hoard Houses, Millennials Struggle to Buy, But Gen Z Gets Ahead w/Redfin’s Chen Zhao

Jun 3, 2024

Redfin's Chen Zhao explains why Millennials struggle to buy homes while Gen Z is ahead, covering age trends in homebuying, the 'silver tsunami' of housing inventory from aging Baby Boomers, and the impact of interest rates on real estate. The episode also delves into the 'buy vs. rent' debate and the shift towards renting single-family homes due to affordability issues.

32:36

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Episode guests

Chen Zhao

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Quick takeaways

Gen Z is outpacing Millennials in homebuying due to assistance from family and early savings.

Millennials lag behind in homeownership compared to previous generations due to setbacks post-2008 recession.

Deep dives

Challenges for Gen Z and Millennials in the Housing Market

For Gen Z and Millennials, the current housing market poses challenges due to high home prices and mortgage rates. Despite affordability concerns, some younger homebuyers are still finding success, especially with help from family members. Millennials lag behind previous generations in homeownership due to setbacks from the 2008 financial crisis.

Generational Population Trends

00:34

Gradual Transition to Assisted Living Facilities and Baby Boomers' Home Ownership

00:35

Introduction

3min

Homeownership Trends Among Millennials and Gen Z

5min

Generational Housing Challenges and Real Estate Market Impact

2min

Generational Trends in Homeownership and Rental Housing

12min

Promotions for Vacation Rental Management, Tax Deferral Services, and Coworking Spaces

4min

The Silver Tsunami: Gradual Shift in Housing Supply

5min

Insights on Demographics and Home Buying Trends

3min

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!

In This Episode We Cover

Why Millennials can’t afford houses, and the reason so many still don’t own homes

How Gen Z is already on track to get ahead of Millennials even with today’s economic turbulence

Buying vs. renting a home and the “mismatch” between what renters want and what landlords supply

A potential reversal of our massive housing shortage and when this could happen

Whether or not the “Silver Tsunami” will hit the housing market as boomers get older

How the increase of “aging in place” will affect home inventory as Gen Z/Millennials try to buy

And So Much More!

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