Boomers gain the upper hand in house owning, again

For the past eight years, millennials have been the generation most likely to purchase a home. However, recent figures show that this trend has changed. Baby boomers are now buying more homes than their younger counterparts in the millennial generation. So what does the future hold for younger home buyers?

This shift may have been caused by several factors. For one thing, recent reports indicate that baby boomers have increasingly higher levels of disposable income than millennials due in part to accumulating greater wealth over time and being further along in their careers. This extra money can be used for a down payment on a home, a crucial factor when it comes to homeownership—which is often very difficult for individuals within the millennial generation to obtain due to their usually lower levels of income.?

In addition, baby boomers have also had some advantages when it comes to credit scores and history which can help them qualify more easily for mortgages and other types of financing when it comes to purchasing a home. As such, they are often able to access better mortgage rates with lower interest rates due to their more established financial histories as compared to many millennials who may still be building up their credit score or dealing with other financial difficulties prior to attempting homeownership.?

Another reason why baby boomers may be taking advantage of more home-buying opportunities could be related to the current real estate market trends. In recent months, the housing market has seen increasing prices as well as higher borrowing costs which can make it difficult for millennials who already struggle with obtaining financing for a down payment in the first place. Meanwhile, baby boomers may have greater access to resources such as savings or investments that can help them afford these rising costs and take advantage of new opportunities presented by an improving housing market climate.?

However, the cost of buying a house can still be a significant burden on millennial households. To help them afford houses without breaking their budgets, many millennials are turning to fractionalised real estate investments, an increasingly popular avenue for investing in real estate without having to buy an entire property outright. Fractionalised real estate investments allow individuals to invest smaller amounts into various types of real estate assets—from single-family homes and condominiums to multifamily units, mixed-use developments and event hotels! There’s no need to make a large upfront purchase or take out large mortgages. Instead of buying an entire property outright, investors can buy a portion of it through fractionalisation.?

Overall, these changes demonstrate how quickly economic and demographic trends can shift from one generation buying the majority of homes to another across different economic climates and markets around the country. Though this particular trend appears to only recently be shifting back towards baby boomers being most likely buyers of homes at this moment in time, there’s no telling if things might change again over the course of a few years. One thing is certain. The world of home buys will need to continue to look at alternative methods to purchase and invest in real estate.?