Boomers’ Housing Death Grip Stalls Millennial Homeownership

Leaf Home released findings from a new report in partnership with Morning Consult that 55% of baby boomers plan to age in their 40+ year old homes, with no plans to ever sell or renovate. This leaves a looming underinvestment crisis that promises a future of deferred maintenance for their millennial inheritors.

Key insights from the report include:

Boomer homes have become time capsules.
– 73% of boomers have been in their current homes for 11 years or more
– Over half of their homes were built in 1980 or earlier with many never investing in renovations.
– The majority of boomers have no plans to make any home improvements.

Boomer homes lack safety and accessibility features to age in place.
– Only 24% of boomers are preparing their homes for aging, with even fewer adding safety features.
– Three-quarters have never added safety or accessibility features in their homes.
– 62% say the same for making changes that allow them to stay in their homes longer.

Surprise inheritance on horizon for millennials fueled by boomer home equity.
– 51% of millennials do not expect to receive any inheritance; of those who do, 33% estimate the value to be $200K or less.
– 81% of boomers plan to leave an inheritance/estate when they pass away; more than half plan to leave $500K or less.
– 82% of boomers value their homes today at $500K or less, while 84% indicate that they purchased their homes for $300K or less.

The report also sheds light on millennial homeownership trends and sentiments. Nearly half believe the American dream of homeownership is dead and cite the main obstacles as the cost of housing and their salaries.

To view the full report, click here.

Image by Freepik