Redfin Report: Rising Mortgage Rates and Home Prices Shift Housing Affordability Advantage Away from Millennials
A new report from Redfin reveals a significant shift in housing affordability between generations. While elder millennials initially enjoyed better conditions than Baby Boomers due to historically low mortgage rates and higher inflation-adjusted household incomes, the post-pandemic surge in interest rates has reversed this trend. Since 2022, millennials purchasing homes have seen their housing costs climb to approximately 35% of their income. Although Baby Boomers faced much higher peak mortgage rates in the early 1980s, lower home prices and subsequent decades of falling rates allowed them more opportunities to refinance. In contrast, many millennials are now locked into high-cost mortgages or priced out entirely by surging property values. While millennial household incomes remain higher than boomers' were at a similar age, these gains are being offset by the increased cost of debt and real estate.
Topics: demographics generational wealth housing affordability mortgage rates
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Part of the story Redfin Report: Rising Mortgage Rates and Home Prices Shift Housing Affordability Advantage Away from Millennials (2 articles)