Most people are aware of the well-known generational labels like Gen X and Gen Z. However, within these broad groups, there exist smaller subgroups with unique experiences and traits, such as the “Sandwich Generation.” This generation is, essentially, sandwiched between taking care of their own young children (under 18) as well as their elderly parents or grandparents.
Per Realtor.com, this generation encompasses 17% of Americans, and a third of them have reported that being in the middle has helped forge a pathway to homeownership. Notably, the current "Sandwich Generation" has received support to help save for retirement and/or afford a home,
"Unfortunately for home shoppers, affordability is still a big challenge in the current housing market, but for the Sandwich Generation, family support is providing a helping hand when it comes to finances," said VP of Research and Insight for Realtor.com, Laura Eddy. "Over half of adults within the Sandwich Generation who receive financial support from family members report that this support is helping them to afford a home, while a little less than half (47%) said the support helped them save for retirement."
Scarce inventory has kept home prices elevated and competition intense among buyers, especially while the housing supply remains below pre-pandemic levels. Nearly half of the Sandwich Generation (47%) say their caregiving circumstances have impacted their finances, including their housing.
Among the negative impacts, 30% say they've been prevented from buying a home, and another 30% report they've been prevented from paying off their mortgage. By contrast, a third say their caregiving situation has helped them financially to buy a home.
"It's not uncommon for people to find themselves taking responsibility for the home of an aging or deceased family member and ultimately inheriting the home after they pass," said Kendall Bonner, Realtor.com housing expert. "With today's increased home equity and the state of current lending rates, it can be an extremely helpful way to get into the housing market, especially if they are not currently a homeowner. Real estate continues to be the most consistent method for building generational wealth."
The Sandwich Generation is not confined to one demographic, though. Survey respondents who identified as part of the generation spanned multiple age groups. Millennials made up the greatest portion (36%) followed by Gen Z (30%), Baby Boomers (17%) and then Gen X (16%). And, between men and women, men were more likely to say they support both kids under the age of 18 and parents/grandparents, with more than half (56%) identifying as part of the Sandwich Generation vs. 44% of women.
Realtor.com reports that Millennials are especially affected financially and on opposite sides of the spectrum. While 46% of millennials who support children and older relatives say it is preventing them from buying a home, another 43% actually said their circumstances are helping them to afford a home. Millennials who are more likely to be parents, say they support their children financially and in the home the most, while Gen Z are more likely than the general population to say they provide financial support to their parents.
