- Many boomers are holding on to their large homes, stressing the housing market for younger buyers.
- For millennials with growing families, purchasing a home has become even more difficult.
- For Biden and Trump, the issue of housing affordability could make or break their candidacies.
For baby boomers with growing families in the 1980s and 1990s, homeownership was a natural next step in their adulthoods.
But when their children moved out to pursue their own dreams years later, many of these boomers remained in their large homes. And at least for the foreseeable future, they’re not going anywhere.
For millennials now looking to purchase a home, especially those now having children of their own, the road has been difficult. The tight housing market has effectively cut them off from purchasing homes within their budget, and high-interest rates haven’t helped.
But many boomers, some still working and trying to navigate their fast-approaching retirements, have chosen to remain in large properties. And many of these homes have continued to appreciate in value, giving boomers second thoughts about downsizing.
According to a Redfin analysis of US Census Bureau data, 28% of homes throughout the country that contain three or more bedrooms are owned by empty-nesters aged 60 to 78. Millennials with children own 14% of similarly-sized properties, a stunning disparity.
But what does this mean for the 2024 election, especially with Gen Z and millennial voters effectively priced out of so many housing markets?
A house of cards
When housing construction stood still during the housing crisis, it led to a lack of new homes for growing families.
And just last week, mortgage rates rose to nearly 7%, according to The Wall Street Journal. Compare that figure to 2020, when there was an average 30-year fixed mortgage rate of just 3.38%.
With the current housing shortage and less-than-ideal mortgage rates, many millennial families are not enjoying the same quality of life as their parents.
Millennials also grew up with soaring higher education costs, so many are still paying off student-loan debt. Others are also paying off record credit-card debt.
According to The Journal, boomers are less likely to have credit-card debt than millennials.
That means a lot of Gen Z and millennial voters are frustrated with leaders in Washington for what many see as inaction to address some of the most pressing issues of their generation.
President Joe Biden has sought to emphasize housing affordability while on the campaign trail, recently making a major speech in Nevada where he spoke about his administration’s efforts to build new units. But right now many voters aged 18 to 44 aren’t enthused with the administration, which could benefit former President Donald Trump despite the left-leaning orientation of many young voters.
Trump has continued to tout the success of the pre-COVID economy under which he presided, but it remains to be seen if he’ll be able to win over the scores of millennials who soundly rejected the GOP in the 2016 and 2020 elections.
One thing is certain, though. There’s still not enough housing.
