Generation X Is Recovering from the Housing Market Crash
Oddly enough, the generation that had the most to lose during the 2007 housing market crash is the only generation that has made a full recovery. Generation X homeowners (born between 1965 and 1980) experienced the largest decline in home equity after the crash. It fell from about $66,000 on average in 2007 to $37,600 in 2010, a drop of 43%.
However, since 2010, the numbers are painting a much different picture. The median net worth of Generation X households has risen 115%, and has officially surpassed what it was in 2007. Now that this generation is in their 40s, they are nearing their peak income and spending power, and they are making more money than the average millennial. This is good news for this generation, as house prices are soaring and the market keeps gaining steam. But, now that this generation has recovered from the crash, they should be able to keep up with rising rates and prices and continue to help restore the market.