Baby boomers whose kids live elsewhere own about 28% of the nation’s large homes while millennial parents — who own about 16% — struggle for a slice of the pie.
Even though their kids have flown the coop, many of the nation’s older generation homeowners have for years been reluctant to give up their space — a trend that new data indicates has continued.
Lopsided scales: Empty nest baby boomers now own nearly 28% of large homes — defined by Redfin in a recent report as homes with at least three bedrooms — while millennials with kids own just under 16% and Gen Z parents own less than 1%.
Baby boomers who reside in households of three or more adults own about 7% of large homes. These households “are likely made up of adult children living with their parents,” noted the report, which analyzed U.S. Census Bureau data from 2024.
Although millennials are now the largest generation of parents in the country — not to mention the largest generation overall — relatively few actually own the kinds of homes that are traditionally thought of as large enough to house a family.
This is due in large part to the persistent national housing inventory shortage and ongoing affordability constraints, according to Redfin economists. More than 1 in 4 millennials do not plan to buy a home in the near future because of high mortgage rates, according to a Redfin survey conducted by Ipsos last fall. Another 20% said they are not considering buying a home because they don’t have the means to save for a down payment.
Baby boomers, on the other hand, typically have significant incentive to stay put, with Redfin data indicating that 57.8% of those who own a home have already paid off their mortgage. They may want to stay in their neighborhood to be close to friends and family, and some may not be able to afford to move to a smaller home in the area.
Millennials slowly gaining share: Empty nest baby boomers have held about the same share of large homes over the past several years, with Redfin data indicating this group of homeowners accounted for 27.7% of the country’s 3-bedroom-plus homes in 2014.
But the situation is slowly changing for millennials with kids. This group of homeowners accounted for 4.9% of large homes in 2014 and 14.2% in 2022, a share that slightly ticked up in the two years that followed.
Some of this could be attributed to the silent generation’s transfer of large homes to millennials. In 2014, the oldest living generation owned roughly 18% of the country’s large homes, a share that dropped to 8% in 2024, Redfin’s analysis found.
Hope for the future? Although many consumers continue to struggle with high home prices and elevated mortgage rates, some economists still believe affordability has a chance of improving as the year goes on.
Mortgage rates have now hit a seven-month high as the war in Iran and its ripple effects continue to upset economic markets. But if the current rate shock can resolve quickly, there’s hope for some catch-up homebuying activity this spring, according to Zillow Senior Economist Kara Ng. The possibility of a quick recovery is, however, far from certain.
Opting out of homeownership: But some millennials and Gen Zers are choosing to skip homeownership altogether — at least for now. According to Redfin’s survey from last fall, 13% of millennials prefer the flexibility of leasing their home and 6% don’t want to deal with home maintenance.
Some Gen Zers and younger millennials are also opting to invest in the stock market instead of a home, according to the Wall Street Journal. Between 2013 and 2023, the share of people ages 25 to 39 who were making annual transfers to investment accounts grew more than three times to 14.4%, the paper’s analysis found, overshadowing increases for individuals 40 and older.