RiskWire: On the House just hit double digits! In the tenth episode, Veros’ Economists welcomed two special guests as they discussed who had it harder in the housing market – Baby Boomers or Gen Z? They discuss many factors that play into this discussion, including affordability challenges, shifts in priorities across generations, wealth accumulation, and more.
Here are some of the key highlights from the episode:
- Buying a home feels far out of reach for the Gen Z, due to high home-price-to-income ratios, high living costs, and limited savings thus far.
- Baby Boomers faced their own set of challenges, but under different economic conditions. Chief Economist, Eric Fox, shared that he bought his first home with a 10.25% mortgage rate- vastly different from the rates you would see today. Financial strain was real, just in a different way compared to Gen Z.
- Supply continues to be a major hurdle for today’s buyers. 40% of homeowners own their home outright, with another 30% holding on to a mortgage rate between 3-4% with no incentive to move. With fewer homes coming onto the market, we are seeing a strong barrier to entry for Gen Z, and other first-time homebuyers.
- Gen Z feels forced into prioritizing their career & education before marriage and homeownership. Because of high costs associated with marriage, childcare, and owning a home, Gen Z feels obligated to build a strong foundation in their career beforehand.
Interested in hearing the full analysis about Boomers and Gen Z? Watch the tenth episode of RiskWire: On the House today: Webcast & Interviews – RiskWire, powered by Veros
For ongoing economic updates and housing market insights, visit RiskWire.com! You can also find RiskWire: On the House on Apple Podcasts, Spotify, and YouTube Podcasts.
