And now-a-discussion on real estate-requires a nod towards both Millennials and Baby Boomers-the front-endingGen Z, oft. Glwed between these titans lay hid the quietly formidable force Generation X. Tucked between, well, giants like these, and born between 1965-82, lays GEN X. In fact, for being a few in size, the size of changes that GEN X is undertaking in the estates and houses is no minor one, quite considerably influencing the course the housing is taking.

From leading through financial challenges to pioneering new, multigenerational living arrangements, Generation X is challenging traditional ways of buying, selling, and managing homes. Let’s explore how this “sandwich generation” is carving its space in today’s housing landscape.

Gen X: The Silent yet Powerful Generation in Real Estate

Gen X, at only 19% of the U.S. population, isn’t afraid to punch above its weight in real estate. A recent report from the National Association of Realtors pegs them at 24% of recent homebuyers, meaning they have great presence on the market. It’s relevant to note that approximately 60% of all Gen Xers are already owners, very often with properties of high market value due to many years of appreciation.

Many Generation X homeowners took advantage of the low-interest rates in the early 2000s, locking in mortgages at an average of 4%. That foresight paid dividends in equity, allowing upgrades into larger, more expensive properties despite today’s tough market conditions.

But there’s a catch in this low-rate advantage: Many Gen X homeowners have grown “locked in” with current interest rates approaching 7%, unwilling to trade their favorable terms for new loans at significantly higher rates. It is a unique situation-an interesting underpinning to the dilemma of whether to stay put or to make a financially taxing move.

Financial Complexities: Wealth and Debt

Generation X is the second-highest-earning generation, with adults earning an average of about $126,900 annually in 2023, which has allowed them to pay for large homes, having the second-largest size among each generation at nearly 1,940 square feet.

Yet, their financial journey is not without its challenges: Gen X carries more debt than any other age group, including an average of $278,935 in mortgage balances and $45,557 in student loans. They also have to bear the added burden of being the “sandwich generation”-having to support aging parents and adult children in many cases.

According to Pew Research, 54% of Gen Xers give financial support to family members. While admirable, this intergenerational support complicates their ability to pay off mortgages, upgrade homes, or even consider retirement planning.

Click here to learn more and subscribe to the newsletter

Multigenerational Living on the Rise

The financial and family responsibilities of Gen X spur a new, growing trend: multigenerational living. With 61.4 million Americans-now one out of six-embedding themselves into homes with more than one generation of adults, as reported in the 2009 American Community Survey, Gen X is most at the center of this tectonic shift in where and how people live-or at least, it increasingly is.

Approximately 19 percent of Generation X homebuyers will look for property to be big enough to accommodate multigenerational living with separate entrances and soundproofing, while enhancing accessibility. For most individuals, such setups are reasonable responses to rising real estate prices and increasing financial dependency within both younger and older generations of one’s family.

Interestingly, nearly a third of the Generation X homeowners report getting financial contributions either from their parents or their children to purchase those homes. This is indicative of the collaborative financial strategies that many have to explore in today’s housing market.

To Stay, Upgrade, or Downsize?

With Generation X well into its 60s, many are at a crossroads in life, where members have to decide whether to stay in the same house, upgrade for more space, or downsize for retirement.

Some use their substantial home equity to trade up, particularly when multigenerational needs call for larger spaces, while others downsize to cut costs and lighten their lifestyles.

Angie Golembiewski, a real estate broker, reports that many Gen Xers still lean toward larger homes despite their approaching the “empty nester” phase. She thinks this is due to delayed moves either because of financial constraints or because of parenting commitments. Boutique properties within familiar neighborhoods also appeal to this cohort, combining luxury with practicality. For those leery of purchasing now, Golembiewski says not to wait for the “perfect time.” She urges people not to wait for even better interest rates, since once the rates go down, so do the number of available homes and the prices tend to appreciate.

Get your free guide “Passive Real Estate Investing For Busy Professionals”

Conclusion 

Gen X Holds a Special Place in Real Estate Gen X is a perfect blend of resilience, adaptability, and financial savvy that deeply impacts real estate. From career high points and family responsibilities to the challenges brought by the shifting market, Gen X reshapes housing trends through multigenerational living, strategic use of equity, and deliberate property choices. 

Going forward, their decisions will continue to echo as strong advice on how all these much smaller yet powerful generational groups could further explore and shape the housing market. Be it trying to position yourself in a block with the Gen Xers or sit back and watch their style, the one bottom line is that this generation is actually far from being a silent player in the equation.

Share this: