Page 82 - AAGLA-JAN 2022

Member Update
Continued from page 81
• 55% of those who are saving cannot afford to buy yet
• 12% of millennials have abandoned their plans to buy a home
• 13% of millennials considering a COVID-driven move want to be Closer to family while 8% wanted to move away from family
Accordingly, there’s a quasi-war over housing going on between U.S. millennials and the generations comprising their parents and grandparents, with many 25-to-40- year-olds caught between blaming older generations for their difficulties in becoming homeowners and feeling dependent on them for necessary financial help if they are ever to succeed. A broad new study conducted by Legal & General Group, a financial services firm and global investor, dives into the deeply held grudge millennials hold against Baby Boomers for thwarting their home buying plans.
In this latest segment of a recent research study titled “Mind the Gap: The Intergenerational Home Ownership Blues,” the study looks at the skyrocketing cost of housing and how changing intergenerational housing needs and other unseen factors are contributing to the reality of housing unattainability for many millennials. With longer healthy life expectancies than ever before, Baby Boomers
are deciding to downsize but remain in privately owned housing, putting a strain on affordable housing stock just as the younger generation of home buyers want to buy starter houses. While the long-term consequences of these demographic shifts are still unfolding, the study found other factors exerting added pressure on the housing market, including institutional investment.
Long known for its diverse friend groups, the millennial generation is now experiencing significant inequality in wealth between those who are college educated and those who are not, and far worse wealth inequity between white and Black millennials. This inequality is only cemented by the probable demographics of parents and grandparents who are likely to be leaving properties and other wealth building assets to their millennial-aged offspring. Another obstacle is that, with older generations’ longer healthy life expectancies, it’s conceivable much of this inherited wealth will come down to generations older than millennials.
Commenting on the results of his company’s latest study, Legal & General Group Chief Executive, Nigel Wilson, stated: “The severe shortage of affordable housing in the U.S., as well as the disproportionate amount of wealth held by older generations, significantly mirrors what we’re seeing in the U.K. Beyond older generations staying put in their own homes or being in a more competitive position to purchase starter-size smaller homes as they downsize,
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