In many respects, millennials face an outsized financial burden. 15 million millennials left college with student loan debt – the most of any generation. Many also entered the housing market during the Great Recession, and continue to face steep competition when trying to buy a home.
New data shows this competition comes largely from baby boomers.
Boomers remain active in the real estate market. In fact, they represented the largest share of homebuyers between July 2021 and June 2022. Baby boomers snatched up 39% of all homes during this period, compared to just 28% for millennials.
Cash Is King
On the whole, baby boomers are closer to their peak earning years, and have also spent decades amassing home equity. So when a bidding war starts, they are better poised to offer all-cash for the property. For the person selling the house, an all-cash offer is almost always too good to pass up.
Last October, almost one-third of all homes sold were bought in cash.
This recent surge of homebuying by baby boomers could be a sign that the aging generation is finally settling into their forever homes. This could mean better things to come for millennials and Gen Zs looking to buy a home.
On the flip side, interest rates have surged since the pandemic, making it far more expensive to finance a home now than in recent years.
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