Read our full analysis for a more in-depth look at these trends.
An uneven housing market: Older Millennials feeling the hit
Home purchasing has slowed for younger generations, especially for older Millennials who are facing rising financial burdens.
December 2023
Key takeaways
- The latest Bank of America Homebuyer Insights Report suggests that homeownership is more important for Millennials than for their parents at the same age. The good news is that they have made meaningful progress over the past few years as historically low mortgage rates in 2020-21 improved home affordability.
- However, with mortgage rates now spiking to near 8%, younger people are being disproportionally hurt. Escrow payments out of Bank of America consumer accounts, which we view as a proxy for home buying, show that home purchasing slowed more for Millennials than for older generations.
- What stands out for us is that within the Millennial cohort, older Millennial households appear to be faring worse. In our view, this is because older Millennials (aged 35-45) face a bigger financial burden. For example, this group has the biggest share of outstanding student loans, according to the Department of Education, and is seeing the fastest rise in credit card delinquencies, according to the New York Fed.
