PR Newswire·Nov 12, 2026, 5:00 AM ET

The Generational Housing Divide: Millennials Had It Better Than Baby Boomers-- Until the Pandemic Changed the Math

RKT

Elder millennials who bought homes in their early 30s spent about 27% of their income on housing, compared with 36% for baby boomers at the same age.
Millennials earn more than boomers did at the same age due to higher female workforce participation, but high housing costs cancel out this income advantage.
Mortgage rates surged from roughly 3% to nearly 7% after 2022, causing housing costs for millennials to rise to about 35% of income for those buying later.
Typical home prices in the 1980s were $235,000 to $265,000 in today's dollars, whereas prices for millennials in the 2010s-2020s ranged from $275,000 to $455,000.
Baby boomers benefited from falling rates in the 1980s-2000s that allowed them to refinance, while millennials who bought after 2022 face a market with high prices & rates.
Rising housing costs & interest rates have priced many millennials out of the market, resulting in a lower homeownership rate than boomers achieved at the same age.
Additional financial burdens on millennials include high childcare costs & significant student loan debt, which consume a large portion of household income.
Gen Zers are currently spending 40% to 60% of their income on housing, tracking behind millennials due to lower current earnings & high home prices.
In 2026, 76% of boomer homeowners report easily affording their payments, whereas only 53% of millennial homeowners say the same.
High home prices & mortgage rates are the primary reasons millennials are staying in their current homes, with 43% citing prices & 30% citing rates.

Company: Redfin
Keywords: Redfin