A recent survey conducted by Realtor.com uncovered that 33% of individuals categorized as part of the ‘Sandwich Generation’ attribute their ability to purchase a home to their financial situation. This data highlights the influence of technological progress on the real estate industry and emphasizes the significance of financial empowerment in attaining homeownership. Let’s explore the implications of this economic analysis for both buyers and sellers in today’s competitive housing market.
Understanding the ‘Sandwich Generation’
Approximately one in six Americans falls into the ‘Sandwich Generation,’ meaning they are simultaneously caring for their children and their aging parents or grandparents. Despite the challenges that come with this responsibility, about a third of this group credits their situation for enabling them to become homeowners.
During a challenging time to enter the housing market, the impact of this dual caregiving role can either be a significant advantage or a source of struggle for the ‘Sandwich Generation.’ More than half of adults in this group who receive financial support from family members stated that it helps them afford a home, while less than half mentioned using the assistance for retirement savings.
Financial Implications and Challenges
The increased caretaking responsibilities have affected the finances of about half of the ‘Sandwich Generation,’ with mixed outcomes. Nearly a third of respondents reported being hindered from buying a home, and another 30% mentioned facing difficulties in paying off their mortgage. However, one-third highlighted that this dual role has provided financial benefits. The impact of caregiving responsibilities on this group heavily relies on the specific circumstances and arrangements within their families.
The ‘Sandwich Generation’ spans across various age groups, with Millennials comprising 36%, Gen Z 30%, Baby Boomers 17%, and Gen X 16%. Among those identifying with this category, 56% were male and 44% were female, indicating a slightly higher representation of males.
Generational Impact and Housing Market Challenges
Millennials are particularly affected by belonging to the ‘Sandwich Generation,’ with outcomes varying significantly. Almost half of Millennial members reported that their dual role is hindering their ability to purchase a home, while 43% stated that it is actually helping them afford one.
Today’s housing market poses challenges to most investors, especially first-time buyers, many of whom are Millennials or Gen Z individuals. For those in the ‘Sandwich Generation,’ the decision to invest in a home may feel overwhelming due to family financial obligations or more feasible with family support. Regardless of the situation, prospective buyers can utilize tools like the Realtor.com Affordability Calculator to gain a better understanding of their home purchasing capacity based on their family’s needs.
