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!
Links from the Show
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On the Market 151 - The Math Behind Mortgage Rates and Why They’re Staying Put
Real Estate Podcast 867 - Zillow and Redfin Top Economists Give Their 2024 Housing Market Predictions
Why Are Millennials So Behind in Homeownership?
Connect with Chen:
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Redfin News
Redfin’s “From Our Economists”
Redfin Report: Gen Zers and Young Millennials Took Out 40% of U.S. Mortgages in 2023
Jump to topic:
(00:00) Intro
(01:03) Are Millennials Priced Out?
(04:29) Millennials’ Lost Decade
(07:46) Gen Z is Getting Ahead
(11:08) Is Homebuying Overrated?
(16:56) The Housing Shortage Could Reverse
(19:58) Boomers Ageing in Place
(25:20) Young People are STILL Buying!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-222
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