It’s a tale that has been told over and over — Millennials just aren’t buying homes and instead are sticking to renting.
The absence of Millennial homebuyers is a big story for the economy, because housing sales and construction are big drivers of jobs. But it’s also an equally big story for the personal finances of Millennials, who are missing out on the real estate wealth that bolstered the balance sheets of previous generations.
“The most impactful contributor to consumer wealth since the great financial crisis has been growth in home equity,” said Brad Friedlander, managing partner at Angel Oak Capital Advisors. “Similarly, there has been a growing wealth gap between homeowners and renters, largely due to home equity.”