Generational wealth transfer

The US is undergoing the largest generational wealth transfer in history. According to global real estate consultancy, Knight Frank, over the next 20 years, approximately USD 90 trillion of assets will be channeled from Baby Boomers (born between 1946 and 1964) to Millennials (born between 1981 and 1996) and Gen X (born between 1965 and 1980). The trend is also reflected in data from the National Association of Realtors, which outlined the different forms of down payment assistance used by first-time homebuyers. About 25% of those aged 23-31 and 17% aged 32-41 reported receiving funds from family and friends for their down payment. Moreover, an additional source of funding of 4% and 3% respectively, came from inheritance.

Source: National Association of Realtors, 2022.