Skip to main content

Study Finds Gen X Homeowners Lacking in Equity

Jul 18, 2017
While many people are ready to tuck the housing crash into the history books, its residue is still being felt by Gen X homeowners with minimal equity gains

While many people are ready to tuck the housing crash into the history books, its residue is still being felt by Gen X homeowners with minimal equity gains, according the latest Zillow Home Equity Report. Indeed, the Gen X demographic has almost as much equity as Millennials homeowners, even though the latter had far less time to gain equity.
 
Zillow found that the typical Millennial homeowner—someone less than 35 years old—owed their lender about 76 percent of their home's current value, while the median Gen X homeowner—someone between 35 to 50 years old—owed 70 percent of their home's value. In comparison, Baby Boomers owed about 56 percent of their home's value, while seniors with a mortgage owed 45 percent.
 
"Roughly half of American wealth is held in home equity," said Zillow Chief Economist Svenja Gudell. "Paying off the home mortgage is a key step toward retirement for most Americans, and it's clear from these results that Generation X is further from that goal than older generations because of the Great Recession. The good news is that home values are still growing relatively fast in most places, building up home equity for homeowners who rely on the investment they've made in their home."
 
Zillow also found the median homeowner with a mortgage has $78,683 in home equity, while homeowners who own their homes outright typically have $177,158 in home equity. The median homeowner has a loan-to-value ratio of 62.2, or owes 62.2 percent of their home's current value, while 75.7 percent of homeowners have at least 20 percent equity in their homes. Five percent of mortgaged homeowners are close to owning their homes free and clear, but 10.4 percent of mortgaged homeowners have negative equity. 

 
About the author
Published
Jul 18, 2017
NAR Reaches $418 Million Settlement

The association agreed to give home sellers the option of compensating agents.

Mar 15, 2024
U.S. Non-Bank Mortgage Lenders Surge Amid Industry Consolidation, Fitch Ratings Reports

As smaller players exit the market, scaled originators like UWM and PennyMac Financial dominate, but challenges persist with low origination volume and pressured margins amidst rising interest rates.

Mar 14, 2024
Guild Mortgage Reports Net Loss In 2023 Amid Acquisition Spree

San Diego-based lender reports net loss for 2023 despite aggressive growth strategy.

Mar 13, 2024
UWM to Cover Upfront Costs of Credit Pulls for Broker Partners

UWM's move comes amid rising credit report charges, providing relief to LOs.

Mar 13, 2024
loanDepot's Losses Mount, Despite Optimisim

Net losses for the fourth quarter totaled $59.8 million – a 43% jump from the third quarter “primarily due to revenues decreasing more than the decrease in expenses.”

Mar 13, 2024
HUD Secretary Steps Down

HUD Secretary Marcia Fudge to depart the Biden administration by the end of the month.

Mar 11, 2024