Boomers now own 37% of the homes in the U.S. while making up just a little over 20% of the population, according to the Census Bureau.
They also hold the keys to 57% of vacation properties and 58% of income-generating rental properties, according to the National Association of Realtors.
Meanwhile, for many millennials, inheriting a house may be the only realistic path to homeownership — 45% of those born between 1981 and 1996 don’t own the home they live in.
Sometimes what’s inherited isn’t a house but a business: Boomers collectively own private companies worth nearly $8 trillion, including 41% of all U.S. small businesses, according to government data. But many retiring business owners aren’t passing them down to their kids in a Succession-style handoff — instead, they’re selling mom-and-pop businesses to ambitious millennials.
Of course, a funeral isn’t required for wealth to start transferring. Some older Americans are already tapping into their nest eggs to help their children and grandchildren with home down payments, private school tuition, and student loan debt. Beyond helping with immediate costs, there’s another incentive: annual gifts of up to $18,000 per individual (or $36,000 per couple) are exempt from gift taxes.
Big picture: Millennials are on track to become the wealthiest generation in history as they inherit the fortunes of their parents and grandparents — a shift that will reshape jobs, housing, and investment markets.
