Millennials account for 43% of all homebuyers in 2022, but a pricey and competitive market has them squaring off with baby boomers for a meager supply of small suburban homes. The share of new Millennial homebuyers flooding the market will only go up in the coming years as the younger half of the generation reaches peak homebuying age, but their timing could not be worse, Fortune says.
Housing prices have risen by 20% nationwide over just the past year, and a record low supply is giving way to heated bidding wars and elevated sale prices, which are no match for budget-conscious buyers.
Boomers have been pricing millennials out of the housing market for months—and ironically, a big reason behind the gap is the wealth boomers have been able to build from owning real estate. A recent study by credit building company Self Financial found that the average net worth of baby boomers absolutely dwarfed that of millennials, with the gap in real estate assets alone standing at over $11 trillion.
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