A recent Redfin (NASDAQ: RDFN) survey reveals that 68.7% of millennial and Gen Z homeowners feel financially better off than they were four years ago, compared to only 52.2% of young renters. This gap highlights growing economic inequality between young people who have entered the housing market and those who remain renters.
The disparity is less pronounced for Gen Xers, with 42.6% of homeowners and 38.8% of renters reporting financial improvement over the same period. Millennials, once dubbed the “unluckiest generation” economically, saw significant shifts in wealth during the pandemic, with many purchasing homes just before the 2021-2022 housing boom. These young buyers benefited from historic price surges, gaining substantial home equity even as prices continue to climb.
“Rising economic inequality between young homeowners and renters has deepened,” noted Redfin Economics Research Lead Chen Zhao. “Pandemic-era low mortgage rates created a brief opportunity for young buyers, but affordability has since deteriorated with soaring rates and high home prices, pricing many out of the market and its wealth-building potential.”
Despite stagnating rent growth, rental costs remain 20% higher than pre-pandemic levels, straining many renters financially. Nevertheless, young renters are more optimistic than their older counterparts, possibly due to career advancement and income growth.
Baby boomers report feeling the pinch the most, with 38.2% of homeowners and 40.2% of renters saying they are worse off financially than four years ago—likely due to fixed incomes.
This survey, commissioned by Redfin and conducted by Ipsos in September 2024, polled 1,802 people aged 18-65, defining Gen Zers as ages 18-27, millennials as 28-43, Gen Xers as 44-59, and baby boomers as 60-65.
About Redfin
Redfin is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country’s #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we’ve saved customers more than $1.6 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.
Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.
