The sandwich generation, or those who are taking care of their children (younger than 18) and parents/grandparents at the same time, encompasses 17% of Americans, according to new research from Realtor.com. The study found that being in the "middle" has led to homeownership for a third of the group.
"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," says Laura Eddy, vice president of 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."
Not confined to one demographic, those who identified as part of the generation spanned multiple age groups, with millennials taking up the largest share at 36%, followed by Gen Z at 30%, boomers at 17%, and then Gen X at 16%. Between men and women, men were more likely to say they support both children 18 and younger and parents/grandparents, with more than half (56%) identifying as part of the sandwich generation versus 44% of women.
Nearly half (47%) of the generation say their caregiving circumstances have impacted their finances. Thirty percent say they’ve been prevented from buying a home, and another 30% say they’ve been prevented from paying off their mortgage.
"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," says Kendall Bonner, 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 homeowners. Real estate continues to be the most consistent method for building generational wealth."
Compared with other age groups, millennials are especially affected financially, with 46% who are in the sandwich generation saying it is preventing them from buying a home. However, another 43% say it has helped them afford a home.
More likely to be parents, millennials say they support their children financially and in the home the most, while Gen Zers are more likely than the general population to provide financial support to their parents.
