A new challenge has emerged throughout real estate markets worldwide: Millennials and Baby Boomers are competing for the same properties. Many smaller, more affordable entry-level homes are appealing to both first-time home buyers (Millennials) and down-sizing retirees (Baby Boomers). This competition has resulted in what we call "The Millennial vs Baby Boomer Bidding War." So, who will prevail?
Baby Boomers often have better finances than Millennials as a result of a lifetime of work and savings. This allows Boomers to offer more appealing financial profiles to sellers, and all-cash offers are common. In addition, paying over asking price is more easily achieved for Baby Boomers as they may have just sold a more expensive home.
On the other hand, Millennials have started being the beneficiaries of the Great Wealth Transfer via inheritance or gifting from prior generations. The Great Wealth Transfer has an estimated worth of $68 trillion, which further compounds the bidding war between them and the Baby Boomers.
It could take at least a decade for housing supply to catch up with US under-building. For the more affordable entry-level homes, it may take even longer to catch up as many builders prefer building the more profitable higher priced homes.
Whatever your real estate goals are, contact us today to start the conversation.