Baby boomers are hanging on to their large homes even if they don't need the space — here's how that decision is hurting young American families

Sabina Wex
4-min read
Baby boomers are hanging on to their large homes even if they don't need the space — here's how that decision is hurting young American families
Baby boomers are hanging on to their large homes even if they don't need the space — here's how that decision is hurting young American families

The ability to purchase a home has become quite the challenge for younger generations partly due to high prices and mortgage rates. Now, those who are raising families have something else to blame.

Empty-nest baby boomers — those who live alone or with one other person — own 28% of three-bedroom-plus homes in the U.S., whereas millennials with kids own just 14%, according to a Redfin analysis of 2022 Census data.

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“There’s unlikely to be a flood of large homes hitting the market anytime soon,” Redfin senior economist Sheharyar Bokhari said. “Logically, empty nesters are the most likely group to sell big homes and downsize. They no longer have children living at home and don’t need as much space. The problem for younger families who wish their parents’ generation would list their big homes is that boomers don’t have much motivation to sell, financially or otherwise.”

Meanwhile, many young families seeking extra space have resorted to renting. Millennials with children represent a quarter (24.8%) of three-bedroom-plus rentals in the U.S., according to Redfin, the largest share of any generational category.

Overall, empty-boomers take up at least 20% of the large housing market everywhere in the U.S., Redfin says.

So, do millennials have a right to be upset at their parents for being squeezed out of the real estate market?

Home economics

This trend of older empty nesters dominating the large home market is fairly new. A decade prior, young families (then Gen X) were just as likely (19%) as empty nesters (then the silent generation) to own large homes (16%), Redfin says. But one thing that’s remained relatively constant is that baby boomers with no kids owned the largest share (26.5%) of three-bedroom-plus homes.

High prices, elevated mortgage rates and a housing shortage has made buying a home a challenge for younger generations — even for the rich. Redfin’s calculations show that 2023 was the least affordable year to buy a home in the company’s records.

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Baby boomers are sitting pretty and have little motivation to move from a position of strength. Redfin data shows that 54% of boomer homeowners don’t have mortgages. Of those who do, they’re locked-in at a much lower percentage than current rates, which are hovering at around 7%.

So, it’s true: millennials got a rotten deal when it comes to buying a home. Though it may be difficult for them to look on as boomers keep living in large homes they longer need, there are still other factors that have contributed to the housing crisis.

Won’t somebody think of the children?

Millennials can pin part of their housing woes on one specific old guy: Uncle Sam.

Redfin’s chief economist, Daryl Fairweather, told Business Insider that there’s political incentives to help boomers stay put.

“Baby boomers are a very large demographic, and they vote more than millennials do,” he said. “Things like property taxes, carve-outs or exemptions for seniors — those are voted for by seniors who benefit from those laws.”

Plus, there are decades of zoning laws that make building anything other than single-family homes impossible.

But millennials are getting creative to deal with the poor housing market. Some are buying homes with friends or looking to the less-expensive housing markets of the Midwest and South.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.