Young People Are Doing Better (Financially) Than You Think

awealthofcommonsense.com

13 points·paulpauper··7 comments

Consistently 1-10 percentage points down is not great.

Unrelated does anyone have an intuition on why home ownership is higher for 21 y/o than 24 in millenials/gens category?

It could be that a lot of trusts give ownership of property upon someone's 18th or 21st birthday. And then a few years later the property has been sold since it might make more sense for someone that young to rent. Or maybe property taxes they can't pay have caught up to them.

Can someone explain why the 1st Redfin chart puts Millennial homeownership at 54.8% and the 2nd Redfin chart puts it at ~65%?

The first is Millenial as a whole, the second is Millenial broken down by age. Essentially, the oldest Millenials have a ~65% homeownership rate and Millenials as a whole have ~54%.

I guess I don't understand the methodology for the 2nd chart breaking it down by age? Can you explain?

I would have expected them to use the same lines in the 1st chart but change the X axis to be age of the cohort so that they start at the same pt.

Sorry late reply. I believe the goal of separating by age is to have a more apples-to-apples comparison and to see trajectories. For instance, it highlights that at a young age, Gen Z is actually ahead of previous generations on homeownership, but also the upward slope looks like it may trend flatter. It isn't drastically different, in this case, than just looking at the averages.

I understand the goal of separating it by age, I'm confused by the methodology they would have used to calculate the data on the second chart and get to 65%.

It seems like you are saying they got to the 65% rate because it's a snapshot of homeownership % for "older millennials" in 2023. But that doesn't make sense because they also give data for 18 year old millennials.

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