Millennials homeowners have almost as much equity in their homes as the generation above despite being owners for a shorter time
Millennials homeowners have almost as much equity in their homes as the generation above despite being owners for a shorter time.
Research from Zillow finds that Gen X homeowners, who suffered the most in the financial crisis, are lagging others in building equity. The analysis considered more than 50 million homeowners with a mortgage.
The median homeowner with a mortgage has $78,683 in equity and a typical millennial (under 35) owes their lender 76% of their home’s current value. A Gen X owner is just ahead, owing 70% while Boomers owe 56%.
"Roughly half of American wealth is held in home equity," said Zillow Chief Economist Dr. Svenja Gudell. "Paying off the home mortgage is a key step toward retirement for most Americans, and it's clear from these results that Generation X is further from that goal than older generations because of the Great Recession. The good news is that home values are still growing relatively fast in most places, building up home equity for homeowners who rely on the investment they've made in their home."
The report shows that 5% of owners are close to paying off their mortgage, 75.7% have at least 20% equity, while 10.4% are in negative equity (down from more than 30% in Q1, 2012.)
Regional figures vary with the surge in home values in the Bay Area meaning Gen X owners owe less than half their home value while in Baltimore, lagging home prices mean that generation owe lenders a median 79% of home values.
Research from Zillow finds that Gen X homeowners, who suffered the most in the financial crisis, are lagging others in building equity. The analysis considered more than 50 million homeowners with a mortgage.
The median homeowner with a mortgage has $78,683 in equity and a typical millennial (under 35) owes their lender 76% of their home’s current value. A Gen X owner is just ahead, owing 70% while Boomers owe 56%.
"Roughly half of American wealth is held in home equity," said Zillow Chief Economist Dr. Svenja Gudell. "Paying off the home mortgage is a key step toward retirement for most Americans, and it's clear from these results that Generation X is further from that goal than older generations because of the Great Recession. The good news is that home values are still growing relatively fast in most places, building up home equity for homeowners who rely on the investment they've made in their home."
The report shows that 5% of owners are close to paying off their mortgage, 75.7% have at least 20% equity, while 10.4% are in negative equity (down from more than 30% in Q1, 2012.)
Regional figures vary with the surge in home values in the Bay Area meaning Gen X owners owe less than half their home value while in Baltimore, lagging home prices mean that generation owe lenders a median 79% of home values.
