The millennial generation has split, new Fed research shows: those over 35 are edging toward boomer-style wealth, while everyone else falls behind - Fortune

What the report says

Fortune reported on July 22 that new research from the Federal Reserve Bank of Minneapolis points to a sharper housing divide inside the millennial generation than conventional homeownership data suggests. The bank’s “homeowners-to-population ratio,” or HPOP, measures ownership by counting individual adults rather than occupied housing units. Using that approach, Fortune said the national homeownership figure is about 53%, compared with the traditional owner-occupancy rate of 65%.

The gap is especially large for younger adults. Fortune reported that standard data showed 37% of under-35 households owned a home in 2024, while HPOP put ownership among all adults in that age group at 22%. Researchers Erik Hembre, Benjamin Horowitz and Maxine Xu found that 13.9% of U.S. adults live in owner-occupied homes without being owners, including adult children, partners, roommates or relatives. For 25-year-olds, HPOP fell from 20% in 2006 to 12% in 2015 and had only recovered to 14% by 2024, according to the article.

Fortune said the findings help explain why older millennials appear to be separating financially from younger millennials. It cited National Association of Realtors data showing baby boomers remained the largest share of home buyers in 2026, while first-time buyers fell to 21% overall. Younger millennials’ share of first-time buyers dropped from 71% to 60% in one year, while older millennials were described as the highest-earning buyer group, with median household income of $132,700.

The significance is that traditional housing statistics may make young-adult ownership look stronger than it is. Fortune also noted the researchers cautioned against assuming permanent exclusion, since many people still become homeowners later in life.