A survey by Talker Research reveals that the average American would be content earning $74,000 annually, but this "perfect salary" only affords a median-priced home in two states, highlighting a significant housing market challenge.
Redfin puts it bluntly: America's homeowner population has stopped growing. Chen Zhao, Redfin's head of economics research, attributes this to "rising home prices, high mortgage rates and economic uncertainty [which] have made it increasingly difficult to own a home." Zhao also noted secular shifts in the economy that may be playing a role. "People are also getting married and starting families later, which means they're buying homes later-another factor that may be at play."
As young buyers scrape together down payments, boomers are sitting on $82 trillion in wealth-more than twice what Gen X has and four times as much as millennials. New research shows the wealth gap has only widened since the 1980s, as older generations saw bigger gains in homeownership and stocks while younger people took on faster-growing mortgage debt. With boomers holding onto large homes and aging in place, younger buyers are struggling to break into a shrinking market.
Between 1983 and 2022, the relative household wealth of Americans 75 and older soared, while the mean net worth of all other age groups fell, according to a new paper by Edward Wolff, a New York University economist. Wolff found the gap was driven by three main factors: the homeownership rate, the share of stocks owned, and mortgage debt. He zeroed in on the gap in median net worth between Americans over 75 and those under 35.
Only 36.4% of U.S. residents under 35 own homes, reflecting a broader decline in homeownership rates among younger age groups. The situation is particularly dire in Massachusetts, where the median listing price is $797,000 and requires an annual income of approximately $210,000 to afford.
More Americans aging into retirement are still paying down mortgages. Over the past three decades, the share of homeowners ages 65 to 79 with a mortgage rose from 24% to 41%.
Boundary lines, or property lines, are critical as they delineate ownership and responsibilities regarding modifications or issues occurring on the property. Disputes over these lines can cause significant problems if not resolved.
While filing for bankruptcy can present financial challenges, it is crucial to understand that it does not permanently close the door on homeownership. Many individuals successfully purchase a home after navigating the bankruptcy process.
The equity exit strategy involves selling a home before the bank forecloses, allowing you to access any remaining equity, pay off your mortgage, and avoid the credit-damaging consequences of foreclosure. This approach highlights the importance of timing, as selling while there’s still market value can prevent a total loss and mitigate financial damage.
A reverse mortgage, or lifetime mortgage, allows homeowners aged 55 and over to borrow against their home's equity, requiring no monthly repayments.
According to Realtor.com economists, 9.4% of Washington homeowners exceeded the previous $10,000 SALT deduction cap. With the new $40,000 ceiling, only 0.8% are projected to remain above the limit.
"Wealth isn't just about income. It's about what you own and how liquid or productive those assets are. That's why I always emphasize home equity, smart investing, and managing cash flow over chasing a bigger paycheck."