Sorry, millennials. You may now be an owner-majority generation — but not in Raleigh

Might be time to give some of that millennial bashing a rest.

Although it’s taken them longer than their parents, millennials are now entering the housing market in droves and have finally become an owner-majority generation, according to a RentCafe analysis.

The number of millennial owners, aged 27 to 33, has jumped nationwide by 7 million in just five years — more than any other generation, the report said. Indeed, millennial owners doubled between 2017 and 2022 in more than one-quarter of the 110 largest metros analyzed using the most recent IPUMS data.

But here’s the rub: Raleigh-Cary still hasn’t passed the threshold.

Bucking the national trend, the region’s millennials are still a renter-majority generation. Even with a 73% surge in homeownership in the last five years, reaching a peak of 101,230 millennial owners, just 45% of the people in this age group are now living in their own homes.

By contrast, the number of renting millennials in Raleigh increased even more — by 85%, with this group having more renters than any other generation, nearly 123,000.

Are millennials getting shut out?

As North Carolina remains one of the fastest-growing states, soaring home prices and higher mortgage rates are keeping many of these would-be homebuyers in the rental market, say experts.

Rising rents are also compounding the problem, said Derrick Thornton, a Realtor with Coldwell Banker Advantage out of Northeast Raleigh. Millennials have trouble saving enough for a down payment because they’re paying so much of their income in rent.

“Hopefully, first-time buyers will still have opportunities to purchase homes. But it will likely be in surrounding areas just outside of Raleigh or Durham,” he told The N&O.

Another possible reason for so many renting millennials?

The growing popularity of the “renter-by-choice” lifestyle. In Raleigh, the number of “rich” renter households — those with annual incomes over $150,000 — skyrocketed by 178% between 2015 and 2020, going from 1,877 to 5,224, a separate RentCafe study reported.

“Homeownership is not a priority for everyone, especially not for millennials and Gen Zs,” said the study’s author, Andrea Neculae.

Which generation owns the most homes in Raleigh?

Gen X (ages 43 to 58) is the largest demographic of homeowners in Raleigh, after a 48% rise in the last five years, the report said. Also, more than three-quarters of Gen Xers in Raleigh (82%) live in their own homes. On the other hand, the number of Gen X renters increased by 69% for an 18% share.

Right after Gen X, baby boomers (ages 59-77) are the second largest generation of homeowners in Raleigh, after a 19% uptick. The number of baby boomers who rent, however, declined by 15%. Consequently, the ratio of homeowners to renters is 80% to 20% for this cohort.

Gen Z, or Zoomers (ages 18-26), are now coming of age and establishing themselves in the job market, the report said. That explains the exponential growth for both owners and renters in this age group: by 102% and 148%, respectively.

The report said 29% of Gen Zers in Raleigh-Cary currently own their homes, while 71 % rent.