Millennials Split: Homeownership Gap Widens

Older millennials, aged 36-45, are now the primary housing market segment, mirroring the economic strategies of Baby Boomers. They command a median income of $132,700 and purchase larger homes, leveraging existing equity to trade up.

Younger millennials, aged 27-35, face significant financial hurdles. Their median home size is 1,600 square feet, and they report student loans, high rent, and credit card debt as major obstacles to homeownership.

Research from the Minneapolis Fed indicates the under-35 homeownership rate is closer to 22% than the commonly cited 37% when measured by household heads.

This affordability crisis is pushing younger Americans toward multigenerational living arrangements, a pattern not seen at scale since the early 1900s. Cost savings are the primary driver for younger millennials buying these homes.

As of 2025, a record 25.2 million adults under 35 lived with their parents, nearly one in three, with most employed and many college-educated.

This trend signifies a reversion to older living patterns, driven by soaring housing costs and rents, suggesting a long-term shift rather than a temporary delay in homeownership for younger generations.