The U.S. housing market is caught in a generational tug-of-war, with baby boomers opting to age in place and passing on outdated, under-maintained properties to millennials. This dynamic is highlighted in Leaf Home’s 2024 Generational Divide in Homeownership Report.
The report from Leaf Home and Morning Consult indicates an impending underinvestment housing crisis. Numerous boomer homes have become akin to time capsules, untouched by home improvements. This stagnation in home updates has resulted in a lack of essential safety and accessibility features for comfortable aging in place. As a result, homeownership seems increasingly elusive to many millennials, exacerbating the generational divide in the housing market.
If these trends continue, the market may face a crisis in the coming decade due to an aging inventory of neglected homes. This could put significant pressure on the home improvement industry and strain the budgets of inheriting millennials, impacting the housing market further.
The 2024 Generational Divide in Homeownership Report, conducted by Morning Consult on behalf of Leaf Home in late December 2023 and early January 2024, includes responses from 1,001 boomer homeowners (aged 59–77) and 1,001 millennials (aged 27–42) in the U.S. The survey aimed to identify key housing market trends among these groups and aid future homeowners in making informed decisions.
KEY INSIGHTS FROM THE REPORT
Many boomer homes have become time capsules, never having made any home improvements.
- Most boomer homeowners (73%) have lived in their current homes for over a decade, with more than half (55%) having no plans to move.
- A significant 68% of them reside in homes that are 30 years old or older, with no updates made or planned.
The majority of boomer homes lack the safety and accessibility features needed to age in place.
- Three-quarters of boomers have never added such features to their homes, and 62% have not made changes to enable them to stay in their homes longer.
- Only 24% of boomers are preparing their homes for aging, with even fewer adding safety features.
More millennial non-homeowners feel home ownership is out of reach.
- They are more likely than millennial homeowners to believe that the housing market favors the wealthy (30% vs. 22%) and that the American dream of homeownership is dead (23% vs. 17%).
- Nearly half of millennials (47%) strongly agree that wages have not kept pace with rising housing costs.
Learn about the impact on the home improvement industry with the full report download and press release.
