Boomers are hanging on to large homes, boxing out millennials with growing families. That could hurt Biden in the election.

  • Many boomers are holding on to their large homes, stressing the housing market for younger buyers.

  • For millennials with growing families, purchasing a home has become even more difficult.

  • For Biden and Trump, the issue of housing affordability could make or break their candidacies.

For baby boomers with growing families in the 1980s and 1990s, homeownership was a natural next step in their adulthoods.

But when their children moved out to pursue their own dreams years later, many of these boomers remained in their large homes. And at least for the foreseeable future, they're not going anywhere.

For millennial homeseekers, particularly those with children, the road has been difficult. The tight housing market has effectively cut them off from purchasing homes within their budget, and high-interest rates haven't helped.

Many boomers, some still working and trying to navigate their fast-approaching retirements, have chosen to remain in large properties. And many of these homes have continued to appreciate in value, giving boomers second thoughts about downsizing.

A Redfin analysis of US Census data found that 28% of homes around the country with three or more bedrooms are owned by empty nesters between 60 and 78 years old. Millennials with children own 14% of similarly sized properties.

The question is: What could this disparity mean for the 2024 election?

A house of cards

During the housing crisis in 2008, home construction stood still, leading to a dearth of new homes on the market.

And an analysis by the mortgage-lending company Freddie Mac released last week found that mortgage rates had risen to nearly 7%, The Wall Street Journal reported. Compare that figure to 2020, when the average 30-year fixed mortgage rate was just 3.38%.

Between a housing shortage and high mortgage rates, many millennial families aren't able to afford the same quality of life their parents did.

Millennials also grew up with soaring higher-education costs, so many are still paying off student-loan debt. Others are also paying off record credit-card debt.

Boomers are less likely to have credit-card debt than millennials, The Journal reported

That means a lot of Gen Z and millennial voters are frustrated with what they see as political leaders' unwillingness to address one of the most pressing issues of their generation.

President Joe Biden has emphasized the need for affordable housing on the campaign trail. At a recent event in Nevada, he touted his administration's efforts to build new units. But many voters between the ages 18 and 44 aren't enthusiastic about the administration, which could benefit former President Donald Trump despite the left-leaning orientation of many young voters.

Trump has continued to tout the success of the pre-COVID economy he presided over, but it remains to be seen if he'll be able to win over the millennials who soundly rejected the GOP in the 2016 and 2020 elections.

One thing is certain, though. There's still not enough housing.

Read the original article on Business Insider