In 2015, millennials comprised a third of all homebuyers in the country. Fast forward to 2025, and their share has dropped to 15%, while boomers have grown their stake, rising to 42%. Clearly, there is a generational shift occurring in the housing market, but the question remains – why is this happening?
In the fifth edition of RiskWire: On the House, Veros’ Chief Economist, Eric Fox, and Sr. Research Economist, Reena Agrawal, provide a comprehensive review of this question. Along with this, they discuss many crucial talking points including affordability, the buying power of boomers, and a general stalemate occurring throughout the housing market.
Here are a few highlights from the episode:
- The median home price has jumped from $285,000 to $425,000, while the 30-year fixed mortgage rate has risen from 3.25% to 6.6% in the last five years, severely affecting younger buyers.
- Boomers currently hold more than $17 trillion in home equity in the United States, which is 50% of all homeowner equity in the country – giving them significant flexibility to buy and sell as they please.
- There seems to be a stalemate in the housing market currently, with 78% of boomers planning on aging in place due to deep attachment to their homes or being mortgage free for high prices of homes. This ultimately keeps the housing market tight, with little room to operate for potential new homebuyers.
Looking for more details on this shift in buyer demographics? Watch the episode today: Webcast & Interviews – RiskWire, powered by Veros
Also, don’t forget to tune into RiskWire: On the House on Apple Podcasts, Spotify, and YouTube Podcasts.
