Why Is Millennial Homeownership So Low?

As the Millennial cohort ages, the homeownership rate among the generation has improved. Even so, the rate of Millennial homeowners remains low compared with previous generations. According to a recent blog post from Home Economics, there are a few reasons for the low rate of Millennial homeownership, but affordability challenges and shifting lifestyle preferences could be the most at fault. 

How does Millennial homeownership compare with other generations?

By age 30, just 25% of Millennials were homeowners. Comparatively, 43% of Baby Boomers were homeowners at the same age.

However, for married couples, homeownership rates were much closer between the two generations. By 30, 68% of married Baby Boomers owned their homes, compared with 60% of Millennials.

Why do less Millennials own homes?

As affordability concerns have gotten worse and lifestyle preferences have shifted over the years, Millennials are more likely to live at home with their parents or with roommates. They are also more likely to postpone marriage and other major life events.

At age 30, 31% of Millennials live with their parents or with roommates, compared with just 19% of Boomers at the same age. Of those who do form their own households, only 61% of Millennial homeowners get married by age 30 compared with 77% of Baby Boomers.