8 Ways Homeownership Was Affordable for Boomers — And Why It’s Harder for Millennials
If you’ve ever felt like buying a home is an impossible dream, you’re not alone. Millennials are navigating a housing market that looks nothing like the one boomers bought into. Back in the day, owning a home wasn’t just a possibility — it was practically expected. College was affordable, wages kept up with costs, and you didn’t need two incomes (or a trust fund) to land a place of your own. These days, homeownership can seem pretty unattainable — and these are the biggest contributors behind the shift.
1. Student Loans Weren’t An Obstacle
Boomers graduated with little to no student loan debt compared to millennials. In 1980, the average tuition for a four-year public college was about $738 per year ($3,013 adjusted for inflation). Today, it’s skyrocketed to $11,011 per year — more than three times the inflation-adjusted cost. As such, millennials are burdened with an average student loan debt of well over $30,000, making it much harder to save for a home.
2. Houses Were A Lot Cheaper
In 1980, the median home price in the U.S. was $62,900 (about $256,832 adjusted for inflation). Now, the median home price is a much higher $355,328. In other words, boomers could buy homes for a fraction of what millennials are expected to pay today, making homeownership more attainable.
3. Wages Kept Up With Housing Costs
During the 1970s and 1980s, wages grew steadily alongside housing costs. The median household income in 1980 was around $21,000 ($79,000 adjusted for inflation), and it was possible to buy a home for 2.5 to 3 times a family’s income. Today, however, median income is about $74,000, while the average home costs over 5 times that amount, making affordability a distant dream for many millennials.
4. A Single Income Could Support Homeownership
In the 1970s and 80s, many families could comfortably buy a home with one full-time income. The average home cost was just 2-3 years’ worth of a family’s salary, meaning a single-income household could manage mortgage payments, utilities, and even save for the future. Today, with the price-to-income ratio far higher, even dual-income households are often struggling to afford homeownership.
5. Homeownership Was Seen As A Long-Term Investment
Boomers bought homes when prices were stable, and they benefited from decades of appreciation. From 1980 to 2025, home values increased by 500%, allowing boomers to build wealth. Millennials, on the other hand, face an unpredictable market with soaring prices and the risk of economic downturns making homeownership a more precarious investment.
6. The Market Was Less Competitive
In the 1970s and 80s, individual buyers dominated the market. Today, nearly 20% of homes are purchased by institutional investors, driving up prices and reducing available inventory. Millennials aren’t just competing with other families — they’re up against hedge funds and real estate firms that can buy homes in cash, pushing prices even higher.
7. Fewer People Rented Long Term
Renting was seen as a temporary phase for boomers before buying a home. In 1980, the homeownership rate was around 66%. Today, more millennials are forced to rent due to high housing costs, with the homeownership rate among young adults dropping to just 42% in 2024. Meanwhile, rental costs have surged, making it even harder to save for a down payment.
8. The Housing Market Was More Predictable
Boomers bought homes in a market where prices grew steadily, increasing around 1-3% per year. Millennials, however, have seen home prices skyrocket by 20-30% in some years, making it difficult to plan for homeownership. Economic downturns, the Great Recession, and now rising mortgage rates have only made the waters of the market more rough.