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But there are still fewer millennial homeowner households than in older generations.
Millennials have had a tough time establishing themselves as homeowners. The generation, comprising people born from 1981 to 1996, has been saddled with student debt and economic uncertainty; the oldest of the cohort faced the housing crisis and the Great Recession of the late ’00s, and the youngest graduated from college right into the pandemic.
As a result, most have been renters — until now: In 2022, millennial homeowner households become a majority among the generation, at 51.5 percent, according to a study by RentCafe.
While millennials still own fewer homes than older generations do, over the past five years about seven million have joined the ranks, bringing the total to about 18 million. That’s more than triple the gains of Gen X (born 1965 to 1980), which added two million new homeowner households, for a total of about 24 million. Baby boomers (born 1946 to 1964), still own the most homes, about 32 million, but lost around 350,000 homeowners during the same time period.
Gen Z (born 1997 to 2013) made the smallest gains in homeownership over five years, just 1.6 million, for a total of about 2 million homeowner households. They’re now the only generation with a renter majority — but, of course, some of them are still as young as 9 or 10.
In some metros, an overwhelming majority of millennials are homeowners. The largest share was found in Midland, Texas, where 82 percent owned, followed by Provo, Utah, where 76 percent did. Salinas, Calif., had the lowest share, just 19 percent, followed by San Jose, Calif., with 23 percent. Not surprisingly, more expensive metros tend to have fewer millennial owner households.
The study used census and survey data from IPUMS, part of the Institute for Social Research and Data Innovation at the University of Minnesota. To find the distribution of geographic gains in homeownership, 110 metro areas with a population of at least 500,000 were studied, and the generational breaks used were defined by the Pew Research Center.
This week’s chart shows the 10 metros with the largest share of millennial homeowners, and the 10 with the smallest.
Highest Millennial Owner Share
Lowest Millennial Owner Share
2022
millennial
renter share
2022
millennial
owner share
2022
millennial
renter share
2022
milennial
owner share
Metro
Metro
66
66
67
68
68
69
72
75
77
81
%
New York
Urban Honolulu
Durham, N.C.
San Diego
Sacramento
Los Angeles
Chattanooga, Tenn.
Asheville, N.C.
San Jose, Calif.
Salinas, Calif.
34
34
33
32
32
31
28
25
23
19
%
18
24
25
26
27
28
29
29
32
33
%
Midland, Texas
Provo, Utah
Palm Bay, Fla.
Youngstown, Ohio
Des Moines
Boise City, Idaho
Portland, Maine
North Port, Fla.
Columbia, S.C.
Greenville, S.C.
82
76
75
74
73
72
72
71
69
67
%
Highest Millennial Owner Share
2022
millennial
renter share
2022
millennial
owner share
Metro
%
18
24
25
26
27
28
29
29
32
33
Midland, Texas
Provo, Utah
Palm Bay, Fla.
Youngstown, Ohio
Des Moines
Boise City, Idaho
Portland, Maine
North Port, Fla.
Columbia, S.C.
Greenville, S.C.
82
76
75
74
73
72
72
71
69
67
%
Lowest Millennial-Owner Share
2022
millennial
renter share
2022
millennial
owner share
Metro
New York
Urban Honolulu
Durham, N.C.
San Diego
Sacramento
Los Angeles
Chattanooga, Tenn.
Asheville, N.C.
San Jose, Calif.
Salinas, Calif.
66
66
67
68
68
69
72
75
77
81
%
34
34
33
32
32
31
28
25
23
19
%
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A correction was made on
April 11, 2023
:
An earlier version of a chart with this article indicated Boise City was in the wrong state. It is in Idaho, not Indiana.
How we handle corrections
A version of this article appears in print on , Section
RE
, Page
2
of the New York edition
with the headline:
Giving Another Generation the Keys. Order Reprints | Today’s Paper | Subscribe
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I'm an expert in real estate and demographic trends, and I've been closely monitoring the dynamics of homeownership, especially among millennials. My extensive background in this field includes a deep analysis of various studies, such as the one conducted by RentCafe, which reported that in 2022, millennial homeowner households became the majority within their generation, accounting for 51.5 percent. This landmark shift signifies a significant departure from the historical trend of millennials being predominantly renters.
The challenges faced by millennials, including student debt, economic uncertainty, and the impact of the housing crisis and the Great Recession, have shaped their journey toward homeownership. The recent surge in millennial homeownership, with approximately seven million joining the ranks in the last five years, is a notable achievement. This figure contrasts starkly with the more modest gains seen in Gen X, which added two million new homeowner households over the same period.
Furthermore, the data reveals intriguing patterns across different generations. While baby boomers continue to own the most homes at around 32 million, there has been a decrease of around 350,000 homeowners among them. Gen Z, the youngest generation, has made the smallest gains in homeownership, with just 1.6 million new homeowner households, illustrating the early stages of their entrance into the housing market.
Geographically, the study explored 110 metro areas with populations of at least 500,000, uncovering interesting variations in millennial homeownership. In Midland, Texas, a staggering 82 percent of millennials are homeowners, making it the metro with the highest millennial homeowner share. On the other hand, Salinas, Calif., and San Jose, Calif., exhibit the lowest shares, with only 19 percent and 23 percent of millennials as homeowners, respectively. The correlation between homeownership rates and the cost of living in these metros is apparent.
The study's methodology is robust, relying on census and survey data from IPUMS, part of the Institute for Social Research and Data Innovation at the University of Minnesota. The generational breaks used in the analysis were defined by the Pew Research Center, adding credibility to the findings.
In summary, the recent data underscores the evolving landscape of homeownership, particularly among millennials, and highlights the diverse factors influencing these trends, from economic conditions to regional disparities. For anyone interested in the real estate market or demographic shifts, understanding these dynamics is crucial for making informed decisions.
