Baby Boomers currently dominate the U.S. housing market, owning $19 trillion in real estate—more than Gen Xers and Millennials combined. In the 1960s and 70s, a housing boom allowed Boomers to purchase homes at a young age, but rising home prices and stagnant wages have made it harder for Millennials, many of whom faced financial struggles due to the 2008 crisis.
At age 40, 69% of Boomers owned homes, compared to 62% of Millennials at the same age. Generation Z, however, is on track to enter the market at a better rate. As Boomers age and leave their homes, experts predict a "silver tsunami" of properties hitting the market, potentially benefiting Gen Z by 2030.
However, factors such as market unpredictability, investor competition, and property conditions could influence prices. Some homes may be passed down or rented out instead of sold, and location will also affect demand. The impact of Boomers on the market continues, and the next shift could primarily benefit Generation Z.
Vocabulary:
• Surplus: An excess amount of something beyond what is needed.
• Milestones: Significant events or achievements in life.
• Unpredictable: Not able to be predicted; uncertain.
• Gradual: Happening slowly over a period of time.
• Excess: More than what is necessary or usual.
• Renovated: Restored to a good state of repair; improved.
• Economist: A person who studies or specializes in economics, often analyzing data about financial systems.
Source: Insider News