4 Housing Market Statistics Millennials Should Read Before Buying a Home
Written by
Emily Fowler
Edited by
Daria Uhlig
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Between student loans, inflation and everything in between, millennials already know how to handle tough economic times. Now, with home prices near record levels, many millennials are facing a stark reality: buying a home might be out of reach, or at least much harder than it was for previous generations.
GOBankingRates surveyed 1,000 Americans ages 18 and older from across the country for its September real estate survey, and the results reveal several stats highlighting just how tough the housing market has become for this generation.
Many Millennials Can’t Afford a Home — At Any Price
When asked about their home-buying potential, an eye-opening percentage of millennials said they couldn’t afford a home at all. In the survey, 20% of younger millennials (ages 25 to 34) and 26.35% of older millennials (ages 35 to 44) said they simply can’t afford to buy a house in 2024, no matter the price.
Housing prices have surged over the past few years, and while older generations might have benefited from lower prices and easier access to credit, millennials are increasingly squeezed out of the market. While the average monthly mortgage rate is $2,209, according to the National Association of Realtors®, the the largest group of younger millennials (25.83% of respondents) and older millennials (38.92% of respondents) would be able to afford to pay less than $750 per month on a mortgage.
Over Half of Millennials Can Only Afford a Home Under $100,000
About 32% of younger millennials and 23% of older millennials said they can only afford homes priced under $100,000. Considering the median home price in the U.S. is $434,050, according to Redfin, this puts most houses completely out of their budget.
It’s not just the dream of the white-picket fence that’s fading — it’s the basic possibility of homeownership without significant financial strain.
Income Expectations Are Out of Sync With Reality
Another revealing statistic from the survey has to do with income expectations. When millennials were asked what kind of income they think they need to comfortably afford a home in 2024, their answers showed a wide range of expectations.
For example, 19.17% of younger millennials and 14.37% of older millennials believed they could afford a home with an income between $50,001 and $75,000. Only a small group — 15% of younger millennials and 12.57% of older ones — believed they’d need to earn $200,000 or more to afford a home.
In reality, a six-figure household income is increasingly required to purchase a home in many places in the U.S. This gap between what millennials think they need and what’s actually required could be setting many of them up for disappointment.
Millennials Are Now the Largest Group of Home Buyers
It’s not all doom and gloom. Despite the challenges, millennials are making moves in the housing market. According to the National Association of Realtors®, millennials have surged ahead to become the largest group of home buyers, making up 38% of the market in 2024 — up from 28% just a year ago.
Millennials might be up against some serious challenges in the housing market, with higher prices, fierce competition and wages that haven’t kept pace, but despite all that, it seems they’re finding ways to make it happen.
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