Recent data from Hometap’s American Dream survey reveals a paradox for the nation’s oldest homeowners. Baby boomers, who bought homes when prices were a fraction of today’s levels, now control roughly 52% of all U.S. household wealth and hold the highest homeownership rate. Yet they are the least convinced that homeownership has delivered on its promise.
Survey highlights
When respondents were asked to choose a single word describing the state of the homeownership dream, 39.6% of baby boomers selected “eroding,” the highest share of any age group. Millennials and Gen X favored the more hopeful term “evolving.” Only 13% of boomers said homeownership had “fully delivered,” compared with 22.8% of millennials and 18.3% of Gen X.
Despite this skepticism, 58.3% of boomers still associate their homes with “stability.” Their concerns appear less about the physical property and more about the broader financial system surrounding it.
Retirement anxiety
Nearly two‑thirds (63%) of baby boomers worry they will need their own savings and assets for retirement before they can help their children, a higher share than millennials (50.6%). This anxiety is underscored by research from the Alliance for Lifetime Income, which notes that an average of 11,400 Americans turn 65 each day – the largest wave of retirees in history. More than half of boomers reaching 65 between 2024 and 2030 have assets of $250,000 or less.
Freddie Mac data shows confidence in a comfortable retirement among boomers fell from 81% in 2021 to 68% in 2024. A 2025 Northwestern Mutual poll found 51% of U.S. adults think it’s likely they will outlive their savings.
Housing affordability crisis
Harvard’s Joint Center for Housing Studies reports that home prices in 2024 were roughly five times median household income – an all‑time high. Prices have risen 551% since 1980, while incomes grew 373%, pushing the price‑to‑income ratio to about 5.08, nearly double the level considered affordable.
The typical first‑time buyer is now 40 years old, and first‑time buyers represent a record‑low 21% of the market, according to the National Association of Realtors. This shift reflects a structural change rather than a generational shortfall.
Boomers remain active in the market
Contrary to expectations of a “silver tsunami” of downsizing, baby boomers reclaimed the largest share of home buyers at 42% last year, while millennials fell to 29% (NAR). Redfin data shows empty‑nest boomers own 28% of large homes (three‑bedroom or larger), twice the share held by millennial families with children.
Nearly 58% of boomers own their homes outright, eliminating mortgage payments and making relocation financially unattractive. An AARP 2024 report found 75% of adults 50 and older prefer to stay in their current homes as they age.
Future wealth transfer
Federal Reserve data indicates boomers hold about 52% of all U.S. household wealth, compared with roughly 11% for millennials. Cerulli projects $124 trillion will transfer to heirs and charities through 2048, with boomers accounting for the bulk of that wealth.
In 2024, one in four first‑time buyers used a family gift or loan for a down payment (NAR). The impending transfer of wealth could eventually increase housing supply, but the timing will be uneven.
Overall, the survey underscores that while baby boomers have amassed significant paper wealth, concerns about retirement security and an increasingly unaffordable housing market shape a more cautious view of the American Dream.
Original reporting: KTVZ (Central Oregon) — read the source article.
