Boomers Living Large While Millennials Scramble to Make Rent

A new statistic has baby boomers catching even more crap from the younger generations. Older homebuyers are prevailing in America's hot housing market. This year, the median age for a repeat homebuyer reached 58 years old, according to data from the National Association of Realtors. This marks a significant jump from just 36 years old in 1981, illustrating how grandparents have been edging out younger first-time buyers struggling to purchase homes.

With mortgage rates soaring and housing inventory limited, older buyers often have an advantage. These homeowners frequently sell a previous property first, giving them extra cash to make all-cash offers or large down payments that appeal to sellers. Additionally, decades of accumulated wealth allow them to appear more financially stable.

As a result, the typical first-time buyer today tends to be in their mid-30s rather than late 20s in the past. They now make up just 32% of homebuyers, well below the 38% historic average. With tight competition, houses often go to older buyers who can pay in cash or show strong finances.

The prevalence of older homebuyers also further squeezes an already short supply of homes for sale. With boomers claiming properties, fewer homes remain for other buyers. This inventory crunch especially impacts young buyers and seniors seeking smaller homes, as they end up competing for similar entry-level houses. In most situations, seniors have the clear advantage.

Millennials, caught in a whirlwind of economic challenges, find themselves struggling to make ends meet. They blame the baby boomers, who architectured an economic landscape where wealth is concentrated in the hands of a few. Millennials bear the brunt of deregulation and union decline, leading to lower wages and diminished bargaining power.

The crippling weight of student loan debt, a collective $1.75 trillion, hinders millennials' financial aspirations. They blame the baby boomers for cutting funding for public universities, forcing them to rely on expensive private loans. This financial albatross delays their ability to save for retirement, buy homes, and start businesses, perpetuating a cycle of debt and economic stagnation.

Millennials inherit an economic landscape shaped by the baby boomers' decisions and policies, where the deck is stacked against them.

In New Jersey, the median age for a repeat home buyer is 59, up from 37 in 1981. Only 30% of home buyers in New Jersey are first-time buyers, down from an average of 38% since 1981. Older buyers in New Jersey are often able to pay all cash or make large down payments, making them more attractive to sellers. The rise in interest rates has not deterred older buyers in New Jersey as much as younger buyers. The decline in home inventory in New Jersey is making it even more difficult for first-time buyers to find homes. According to the latest report from the New Jersey Association of Realtors, the median sales price for a single-family home in the state rose 13.7% to $528,000 in the second quarter of 2023 from the same period in 2022. The number of homes sold also increased by 1.9% to 10,400. The inventory of homes for sale fell by 18.5% to 2.7 months of supply.

The report also found that the median sales price for a condo in New Jersey rose 9.4% to $325,000 in the second quarter of 2023 from the same period in 2022. The number of condos sold also increased by 1.6% to 3,100. The inventory of condos for sale fell by 15.6% to 1.7 months of supply.

The strong demand for housing in New Jersey is being driven by a number of factors, including low interest rates, a strong economy, and a growing population. The state is also home to a number of large employers, such as Amazon, Google, and Johnson & Johnson, which are attracting workers from all over the country.

As a result of the strong demand, homes in New Jersey are selling quickly and for above-asking prices. The median days on market for a single-family home in the state was 27 in the second quarter of 2023, down from 32 in the same period in 2022. The median days on market for a condo was 30 in the second quarter of 2023, down from 34 in the same period in 2022.

The data paints a concerning picture for aspiring young homebuyers in New Jersey. As older generations with accrued wealth snap up limited housing inventory, first-time buyers struggle to break into the market. The median age of 59 for repeat homebuyers shows seniors leveraging market conditions to trade up, while thirty-somethings delay major milestones. With homes selling quicker and for higher prices, millennials blame baby boomers for an economic landscape where homeownership slides further out of reach. The trends squeeze all buyers but stack the deck against those trying to get a first foothold. Without intervention to increase affordable housing stock, New Jersey faces generational inequities intensifying in the years ahead.