Exploring the Generational Divide in Homeownership: Insights from the 2024 Report
The landscape of homeownership in the United States is undergoing a significant transformation, shaped by the divergent paths and priorities of baby boomers and millennials. The "2024 Generational Divides in Homeownership Report," conducted by Morning Consult for Leaf Home, sheds light on these contrasting trends, including aging-in-place, home improvement priorities, and market sentiment among these two pivotal generations.
Key Findings from the Report
Boomers Preferring to Age in Place: A striking 68% of boomer respondents occupy homes that are over 30 years old, with a notable portion having never undertaken major renovations or appliance replacements. Additionally, a majority express no intention of moving or making future home improvements.
Millennials on the Move: Contrasting sharply with boomers, 84% of millennials surveyed are contemplating a move, driven by changing household needs, with nearly half aiming for larger living spaces.
Inheritance Expectations vs. Reality: While 81% of boomers plan to leave an inheritance, over half anticipate leaving $500K or less. Meanwhile, 51% of millennials do not expect to receive any inheritance, highlighting a disconnect in financial expectations between generations.
Long-term Residency and Lack of Improvements: The majority of boomers have lived in their current homes for more than a decade, with many residing in properties that have seen little to no updates, particularly in adding safety or accessibility features necessary for aging comfortably in place.
Retirement and Home Improvement Plans: The report indicates a significant drop in the likelihood of boomers undertaking home improvements upon retirement, particularly in major renovations, landscaping, or appliance upgrades.
Downsizing Trends: Among boomers considering a move, there's a leaning towards downsizing to smaller single-family homes or transitioning to retirement communities, driven by various factors including proximity to family and retirement.
Implications for the Housing Market
The findings from the 2024 report highlight several critical dynamics shaping the U.S. housing market:
Aging in Place vs. Housing Supply: Boomers' preference to age in place could exacerbate housing supply shortages, limiting options for millennials and subsequent generations seeking to enter the market.
Home Improvement Priorities: The disparity in home improvement efforts between boomers and millennials suggests differing priorities and financial capabilities, influencing the types of properties that will be available and desirable in the future market.
Generational Financial Gaps: The stark contrast in inheritance expectations between boomers and millennials underscores broader economic challenges and perceptions of financial security across generations.
Market Sentiment and Mobility: Millennials' desire for larger homes and their willingness to move for changing household needs contrast with boomers' static approach, potentially driving future trends in housing demand and urban planning.
Conclusion
The 2024 Generational Divides in Homeownership Report provides invaluable insights into the evolving dynamics of the U.S. housing market, influenced by the diverse needs, expectations, and behaviors of baby boomers and millennials. As both generations navigate their respective housing journeys, their choices will continue to shape the landscape of homeownership, market demand, and the broader economy in the years to come.
