Homeowners Born Before 1981 Are in For a Nice Surprise

Last updated: March 20, 2017

Since 2014, Generation X’ers have been drastically underrepresented in the home buying population. After being locked into high rate mortgages after the real estate bubble burst, Gen. X’ers were trapped in homes worth less than they owed. Fortunately, this year has seen the first real jump in Gen. X home purchases which bodes well for the once lost generation.

What Happened to the Gen X’er’s?

The Gen X’er’s were among the hardest hit homeowners when the real estate market crashed after peaking in 2006. As the prices of homes began to plummet and the housing market was flooded with homes, homeowners like the Gen X’er’s found themselves stuck. Too many homes on the market drove property prices down but despite this, homeowners were still left paying high mortgages. What happens when your home is worth less than your mortgage? It means that despite paying your mortgage on time, you are never gaining any equity in your home. With no equity, you’re stuck. You can’t sell your home because you’ll still need to pay your mortgage, but you can’t refinance because you owe so much more than your home is worth. This left Gen X’er’s short selling their homes, experiencing foreclosure, or simply paying into mortgages without receiving any equity in return.

Why Are Gen X’er’s in For a Nice Surprise?

A recent study released by the National Association of Realtors which details generational trends in home buying and selling showed a shift in the market. In the past year, Gen X’er’s made up 28% of home buyers. This increase indicates that the times are changing and those changes are good!

No longer are Gen X’er’s spinning their wheels, stuck with low-valued homes and high rate mortgages. Finally able to get out from under their debt or the repercussions of foreclosure, Gen X’er’s are finding their way back to home ownership on good footing. This is the light at the end of the tunnel that so many Gen Ex’er’s have been waiting for.

They’re Back and Better Than Ever!

Despite the setback, Gen X’er’s are not only the largest percentage of homebuyers than they have been in the past three years, but they are buying bigger homes as well. This means that Gen X’er’s are out from under their crushing mortgages and they have enough equity in their homes to upgrade! And fortunately, Gen X’er’s are now at a point where they are making the highest annual income of any generation before them, because the houses they are purchasing are costly!

Will Gen Ex’er’s Remain “On Top”?

While certainly not the largest portion of home buyers, Gen Ex’er’s are finally making their way back to the top. They will never outnumber the millennials in terms of home ownership, but market analysts remain hopeful that Gen Ex’er home buyers will continue to grow in number. Even with changes in homeowner benefits under President Trump, past experience gives this generation all they need to know to stay on good footing this time around!