Generational Divide: Why Millennials and Gen Z Are Struggling to Enter the Housing Market.

Baby boomer parents are outbidding their millennial children for starter homes, as they are often "equity rich" and less price-sensitive due to their higher investments in the stock market. As boomers downsize and millennials enter the housing market, they are in direct competition for similarly priced and sized homes. This generational clash is fueled by the soaring cost of childcare, as boomers look to help out their millennial kids by selling up and moving close to provide extra help rearing the pandemic babies. This dynamic is tracked by the Baby Chaser Index, which shows that 25% of boomers are relocating to get closer to their grandchildren.