Millennials Are 'House-Rich': How One Generation Doubled Their Wealth

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A generational shift in wealth dynamics is happening right now and millennials are coming out on top.

Many millennials aged between 28 and 43 see their net worth double in just a few years, largely attributed to homeownership. It has positioned the group ahead of previous generations regarding asset accumulation at a similar age.

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Marissa Jannetti’s story is anecdotal but defines the trend. In 2018, Jannetti and her husband purchased a four-bedroom condo in Orange County, California, using an FHA loan for just over $430,000. Despite initial financial strain, their decision to enter the housing market proved profitable.

When mortgage rates plummeted during the onset of the COVID-19 pandemic in 2020, the couple refinanced, reducing their monthly payments by about $1,000 and rapidly building equity.

Data from the Federal Reserve Bank of St. Louis backs it up. The median household net worth of older millennials born in the 1980s doubled from $60,000 in 2019 to $130,000 in 2022. As of earlier this year, millennials and older Gen Z-ers had accumulated roughly 25% more wealth than previous generations at a comparable age, adjusting for inflation.


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According to Realtor.com, who initially reported on Jannetti’s story, the wealth surge was primarily tied to real estate investments. “Younger households tend to have a greater share of their wealth tied up in real estate,” Realtor Chief Economist Danielle Hale said. In the second quarter of this year, real estate comprised 42% of millennial assets, much higher than for other generations.

COVID-19 played a role in the wealth accumulation. Jonathan Spears, founder of Spears Group at Compass, said millennials who bought homes before the pandemic saw exponential growth in their wealth. “The last five years was maybe one of the greatest time frames in United States history for wealth accumulation and growth,” Spears said.

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However, the windfall comes with its challenges. Many millennial homeowners now find themselves in a “golden handcuffs” situation. With low mortgage rates locked in, the prospect of moving to a larger home often means facing higher monthly costs, leading many to stay put longer than initially planned.

Despite the rate-lock constraints, Richard Redmond, founder of Redmond Mortgage Capital, said that millennial homeowners should feel proud of their investment. “What could have been a better investment? Perhaps Bitcoin or Tesla but realistically, real estate has been a really good, safe bet,” Redmond told Realtor.com.


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Industry experts remain optimistic about millennials who have yet to enter the housing market. Spears advocates getting into the market as soon as possible, even with current high interest rates. He suggests using strategies like “dating the rate,” where buyers accept a higher rate initially with plans to refinance when rates drop.

Current market conditions, characterized by high rates but less competition, offer unique advantages for new buyers, Realtor said. “Back in 2020, you may not even be able to get the house you wanted because you’ve got 30 other offers that can go all-cash, with no contingencies and no inspections. Now, it’s different,” Spears said.

While challenges remain – particularly for those yet to buy their first home – the millennial generation’s success in leveraging homeownership for financial growth sets a compelling precedent for future homebuyers.

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