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The majority of baby boomers — those born between 1946 and 1964 — believe younger generations simply aren't doing everything they can to afford a home. However, the factors dividing these generations span more than work ethic alone.

Are boomers' beliefs rooted in reality, or do they not understand the struggles younger generations face? While it's tempting to point fingers, adults of all ages may be contributing to today's homeownership woes in different ways.

Boomers play the blame game

In the Clever study, baby boomers cited several reasons they believe younger generations can't afford homes, but most blame irresponsible spending. About 71% said young adults spend more on frivolous things like travel and luxury items rather than saving for a down payment.

"This perspective often overlooks factors like the significant rise in home prices, increasing student debt, and stagnating wages, which make saving for a home more challenging today than in the past," explains Alexis Orivri, a real estate expert and founder of in Washington.

In fact, a 2023 Bank of America report found baby boomers' spending grew 2% over the previous year, with much of it going toward travel and hotels. Many older Americans benefit from increasing Social Security payments that offset living costs. Payments were 8.7% higher in 2023 and will grow 3.2% in 2024.

By contrast, younger generations pulled back on spending in the same period due to student loan debt and housing costs. Millennials and Gen X hold about 87% of the country's student loan debt, which tops $1.63 trillion. In addition, 72% of those aged 44 and younger live in rental properties and saw their rent increase for the fifth straight month in August.

"Back in 1980, rent was 14% of your average income, but since 2010, it increased to 25–30%," said Bennett Heyn, Gen Z founder of Sell House Columbus. "(Boomers) think that by skipping Starbucks and other comforts, Gen Z will be able to save enough money to buy a house, but they're wrong."

Boomers also fault younger generations for not compromising on where they live — and they may have a point. Gen Z, in particular, flocks to larger cities despite limited housing and general unaffordability.

Urban areas tend to boast more job opportunities, lifestyle preferences, and proximity to essential services. Still, the influx to large cities increases demand, housing costs, and rent, making it difficult to save for a down payment.

"Although these urban areas are expensive, moving away from them can limit career prospects, making it a difficult trade-off," Orivri says.

Should boomers bear some responsibility?

Due to the ongoing housing shortage, boomers' homeownership decisions could significantly impact the market in the coming years. This generation accounts for 38% of homeowners. As older Americans sell their homes over the next decade, Freddie Mac estimates 9.2 million houses will enter the market.

For now, many baby boomers are aging in place, which limits available inventory for first-time buyers, particularly in desirable neighborhoods. About 54% of boomer homeowners never plan to sell, and only 15% intend to in the next five years. Mortgage rates may be one thing holding them back — in most cases, the rates they secured are at or below the rates today's buyers face.

"There are a couple of factors at play here," points out Martin Orefice, CEO of Rent To Own Labs. "Some baby boomers are stuck with larger homes that are out of younger buyers' price range, while others are holding onto more affordable homes in first-ring suburbs."

Boomers own nearly 28% of the country's large homes, which could enter the housing market as owners downsize. Depending on where you live, the price for a three-bedroom house ranges from $163,000 to $900,000. As of March 2024, the average annual U.S. income was $63,795, putting many of these large homes out of reach.

Buyers' wants further complicate the matter. Data from the National Association of Home Builders shows only 14% of buyers are looking for a home larger than 3,000 square feet. The median desired home size is 2,067 square feet.

"There is some movement as boomers downsize, though this often doesn't align with the budget or preferences of younger buyers," Orivri says.

Baby boomers wanting to sell and buy at the same time have another advantage over their younger peers: the ability to pay all cash for home purchases, a factor favored in bidding wars and one that often jacks up prices.

Sorry, grandpa, times have changed

While boomers' attitudes toward younger generations may seem harsh, they might not fully understand just how much the housing market has changed. About 64% of older Americans paid $100,000 or less for their first home. Even more eye-opening is that only 11% of this age group made more than $75,000 annually at the time of their home purchase.

Compare that to today, when homebuyers need an annual income of $120,000 to afford the national average home price of $412,300. This puts the home price-to-income ratio at an all-time high, meaning today's workers must make more money to afford a modest house. In fact, the difference between home price and income hasn't been this large since the 1970s.

"Average income has roughly doubled in the last 30 years, while home prices have gone up four- or five-fold in many markets," Orefice adds.

While some boomers saw mortgage rates at or above today's levels in the 1970s and '80s, their wages increased each year at a similar pace. By contrast, national home prices grew 43% from 2019 to 2022, but incomes rose only 7%.

Enough finger pointing

The troubles plaguing young homebuyers aren't likely to ease soon. While the Federal Reserve cut interest rates by half a percentage point on Sept. 18 to cool inflation, other sky-high expenses keep some potential homeowners out of the market.

"Younger people like my kids need to spend 40–50% of their income on things like rent, groceries, bills, and more," points out Carl Fanaro, a Gen X real estate investor and CEO of Nola Buys Houses. "There isn't much room to save up to buy a house unless you have a high-paying job above $100,000, but not everyone can easily get a job like that in this economy."

Older Americans worrying about offloading large houses in current conditions may have luck with companies that pay cash for homes, although they typically buy below market value. Still, it increases inventory for first-time buyers or families needing additional space.

While each age group has strong beliefs about the others, one thing is clear: No generation is immune from a high-cost housing market. As the kids say, "it's savage out there.