Millennials on Track to Become Broadly House-rich and Cash-poor, Study Finds
December 13, 2021
The oldest members of the millennial generation will not qualify for a Home Equity Conversion Mortgage (HECM) until 2043, however the housing woes being faced by the cohort could lead many members of that generation to become more “house-rich and cash-poor” than those that preceded it.
This is according to a survey released this month by alternative home equity tapping company Hometap.
Millennials are also more likely to have a far weaker understanding of their home equity situations, the study found.
“Millennials are spending the highest percentage of their monthly income on homeownership costs compared to other generations and are at the greatest risk of becoming house-rich and cash-poor,” the company said in an announcement of the survey results. “With real estate values remaining high nationwide, millennials are also the least likely to know how much equity they have in their homes or how to calculate it.”
This article originally appeared on Reverse Mortgage Daily. Read the full article here.