Millennials have long been dubbed the “Generation of Renters,” but that’s history as they’ve finally achieved a sought-after milestone: the majority (52%) of them own a home across the U.S. More exactly, 7 million Millennials have become homeowners in the last 5 years — more than any other generation, according to our most recent study.
In metro Los Angeles, things are not as bright for Millennials. Despite an increase of 132,000 Millennial-owned households in the last 5 years, almost two-thirds of the generation still have a landlord. The path to homeownership might be longer, but they surely shape the housing market in LA the most, as the only established age bracket that saw increases in both homeowners and renters.
Read on for more interesting findings about the Los Angeles metro area extracted from the most recent IPUMS data:
Millennials (aged 27-42)
- Baby Boomers move over: Millennials in the Los Angeles metro experienced the largest increase in ownership (47%) among the established generations, totaling now more than 400,000 households. As a result, 31% of Millennials living in the area own their homes, which is in contrast with the national average of 52%.
- Even so, they remain the largest generation of renters, with almost twice as many Millennial homeowners – a total of 911,000 Millennial renters.
Gen X (aged 43-58)
- Gen X is the second largest generation of homeowners after Baby Boomers, despite a major decrease of 11% in the past 5 years, totaling a little over 600,000 households.
- However, the share of renting Gen Xers has decreased by 7.9% during the same timeframe — that’s the largest drop across all generations who rent.
Baby Boomers (aged 59-77)
- Even though they saw a major decline in ownership (-19%) in the last 5 years, Baby Boomers still boast the highest share of homeownership majority inside a generation (56.5%). On top of that, they are the largest generation of owners, with over 716,000 Baby Boomers enjoying the comfort of their own home.
Gen Z (under 26)
- When it comes to renting, the area’s rich cultural scene and dynamic tech business environment led to an 82% rise in Zoomer renters in the last 5 years.
- 52,000 Gen Zers already took a step towards homeownership in the area but that’s only 20.5% of this group.
Here’s the full report with a complete generational overview of the largest metros in the U.S: https://www.rentcafe.com/blog/rental-market/market-snapshots/millennials-switch-renter-to-owner-majority/
