These Gen Xers Put Off Buying a Home—Now They See How Good They Had It
Summary
Many people from Generation X experienced a time when housing was more affordable compared to their incomes, allowing them to rent or buy homes more easily. Today, younger generations like Millennials and Gen Z face higher housing costs that grow faster than wages, making it harder for them to own homes or live independently.Key Facts
- In the 1990s, some Gen Xers could save enough money to make a down payment on a home while working entry-level jobs.
- For example, in 1996, a $26,000 salary could rent a city apartment for $400 a month and still allow for savings.
- Inflation adjustment shows wages were higher relative to housing costs in the past than they are today.
- The average salary for young adults today is much lower compared to inflation-adjusted salaries of Gen Xers in their twenties.
- Housing costs, including rents and house prices, have increased much faster than wages, especially in big cities.
- Economists say this creates a very different market where younger people struggle more to afford housing.
- This trend makes it harder for Millennials and Gen Z to buy homes or live alone compared to Gen X at the same age.
- The U.S. Department of the Treasury reported that housing prices and rents are rising faster than incomes across most areas in 2024.
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