Millennials Lose Ground as Homeownership Falls Across Ages
Millennials have seen the sharpest drop in homeownership at ages 36 to 48, as a new report found ownership rates fell across every age group in the United States. The American Enterprise Institute analyzed New York Fed data and concluded that fewer people of all ages can afford to own a home.
The report says the entire age-ownership curve has shifted downward, with lower purchasing power pushing fewer people into ownership at 28, 38 and 48. Hannah Jones, a Realtor.com senior economic research analyst, said lower- and middle-income households may never accumulate home equity and miss out on wealth transfer.
American Enterprise Institute Data
The report draws on New York Fed data and compares ownership rates over time. In 2000, 9% of 20-year-olds owned a home; by 2022, that share had fallen to 5%. Among people up to age 59, the rate fell from 83% in 2000 to 77% in 2022.
For 40-year-olds, ownership dropped from 69% in 2000 to 58% in 2022. The report also says the pattern is not limited to younger buyers. It states, “The mistake is to assume that affordability pressures mainly delay younger buyers.”
Hannah Jones On Wealth
Jones said, “Homeownership has historically been the primary vehicle through which American middle-class families build and transfer wealth.” She added, “If lower- and middle-income households never accumulate home equity, not only do they miss out on appreciation themselves, but there is nothing to pass down, no down payment gift to a child, no paid-off home for retirement.”
That leaves the pressure on households that are trying to buy now, especially at the ages where ownership once rose steadily. The report cuts off at age 59 and says the survey year available was 2022, but the trend line it lays out is already clear: the market is reaching fewer buyers across the full adult range.
Age-Ownership Curve
The report says higher home prices over the past couple of decades have helped push ownership lower, while the cost of comparable homes and the lock-in effect can keep current owners from moving. It also says, “Some younger households delay buying—but many never buy at all.”
It adds, “At the same time, older households who might have become first-time buyers under more favorable conditions are also shut out.” For readers weighing a purchase, the practical hurdle is no longer just entry-level buying power; the report says the squeeze now reaches deeper into middle age, where homeownership has long been part of family wealth building.
