The Merriam-Webster Dictionary defines the “sandwich generation” as a generation of people who are caring for their aging parents while supporting their own children—and according to new research by Realtor.com, 17% (or one-in-six Americans) of Americans fall into this designation who are taking care of children under 18, and their parents/grandparents; an impact which has surprisingly led them to homeownership.
The report also examines how the current Sandwith Generation has received support to help save for retirement or afford a home of their own.
“Unfortunately for home shoppers, affordability is still a big challenge in the current housing market, but for the Sandwich Generation, family support is providing a helping hand when it comes to finances,” said Laura Eddy, VP Research and Insight for Realtor.com. “Over half of adults within the Sandwich Generation who receive financial support from family members report that this support is helping them to afford a home, while a little less than half (47%) said the support helped them save for retirement.”
Being in the Sandwich Generation is equal part negative and helpful
The ongoing lack of available inventory has kept home prices high and competition intense among buyers. For the Sandwich Generation, nearly half (47%) say their caregiving circumstances have impacted their finances, including their housing.
Among negative impacts, 30% say they’ve been prevented from buying a home, and another 30% report they’ve been prevented from paying off their mortgage. By contrast, a third say their caregiving situation has helped them financially to buy a home.
“It’s not uncommon for people to find themselves taking responsibility for the home of an aging or deceased family member and ultimately inheriting the home after they pass,” said Kendall Bonner, a Realtor.com housing expert. “With today’s increased home equity and the state of current lending rates, it can be an extremely helpful way to get into the housing market, especially if they are not currently a homeowner. Real estate continues to be the most consistent method for building generational wealth.”
Being in the Sandwich Generation is equal parts negative and positive
For the Sandwich Generation, nearly half (47%) say their caregiving circumstances have impacted their finances, including their housing. Among the negative impacts, 30% say they’ve been prevented from buying a home, and another 30% report they’ve been prevented from paying off their mortgage. By contrast, a third say their caregiving situation has helped them financially to buy a home.
“It’s not uncommon for people to find themselves taking responsibility for the home of an aging or deceased family member and ultimately inheriting the home after they pass,” said Kendall Bonner, a Realtor.com housing expert. “With today’s increased home equity and the state of current lending rates, it can be an extremely helpful way to get into the housing market, especially if they are not currently a homeowner. Real estate continues to be the most consistent method for building generational wealth.”
Male Millennials and Gen Zers are most likely to identify as part of the Sandwich Generation
The Sandwich Generation is not confined to one demographic. Respondents who identified as part of this generation spanned multiple age groups. Millennials made up the greatest portion (36%) followed by Gen Z (30%), Baby Boomers (17%) and then Gen X (16%). And, between men and women, men were more likely to say they support both kids under the age of 18 and parents/grandparents, with more than half (56%) identifying as part of the Sandwich Generation vs. 44% of women.
Millennials are the most financially affected in the Sandwich Generation
According to Realtor.com, Millennials are especially affected financially, and on opposite sides of the spectrum. While 46% of millennials who support children and older relatives say it is preventing them from buying a home, another 43% actually said their circumstance is helping them to afford a home. More likely to be parents, Millennials say they support their children financially and in the home the most, while Gen Z are more likely than the general population to say they provide financial support to their parents.
Click here to read the report in its entirety.
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