More than half of baby boomers believe the younger generation could not afford homes in today's market because they are not trying hard enough.
That is according to a recent survey released by Clever Real Estate, which surveyed 1,100 boomer Americans born between 1946 and 1964. In the survey, the real estate website asked boomers why they think younger generations could not afford to buy homes.
At least 57% of baby boomers said they believe younger generations could afford a home if they tried harder. In addition, 71% believe young people would be able to purchase a home if they did not spend money on frivolous things.
Furthermore, almost two-thirds (64%) of baby boomers also believe younger generations would be homeowners if they were more responsible. Meanwhile, 56% said younger Americans are not homeowners because they would not compromise on where they want to live.
Baby Boomers' Housing Market
Many boomers bought their first homes at low prices, with 34% saying they bought their first one for $50,000 or less, while 30% paid less than $100,000. Over a third (35%) said they purchased their first home for $200,000 or less.
Nearly half of boomers (44%) said they earned less than $30,000 a year when they bought their first home, but only 6% said they found their first place too expensive.
Today's Housing Market
As of August, the median price of a home sold in the US was $433,229, per Redfin. To comfortably afford a starter home, US buyers must earn at least $79,252 annually.
A home is affordable if the buyer does not have to spend more than 30% of their gross income on housing costs. For perspective, an American worker earning a median wage makes $59,436 yearly.
Report says that 43% of boomers recognized the financial challenges faced by hopeful homeowners in the younger generations, specifically among Gen Z. Only 19% of boomers also said they believe they could afford a home in their 20s if they were buying in today's housing market.
