MILLENNIALS ENTER PRIME EARNING AND PRIME HOMEBUYING YEARS
In spite of the growing gap between millennial home prices and millennial incomes, millennials are entering their prime earning years, making it a pivotal time to buy a home. The median income for homebuyers between 35 and 44 was $120,000 in 2021, which is 30% more than the median income for homebuyers between 25 and 34 ($92,000), and 103% more than that for homebuyers under 25 ($59,000). Gen X was the only age group earning more than millennials, with a median homebuyer income of $124,000—which also means that millennials can expect some remaining growth in purchasing power in the years ahead.
This additional income will likely come in handy, because despite millennials earning less than Gen X, they have been spending more on home purchases than any other generation. The median home purchase price for individuals ages 35 to 44 was $425,000. That’s 23% higher than the median home purchase price of individuals ages 25 to 34, and approximately 5% more than individuals ages 45 to 54.