Survey finds generational divide on economy, housing market

Americans are sharply divided over the nation’s economic outlook, interest rates and the housing market, according to a new survey from Realtor.com.

The poll found 42% of respondents expect the economy to worsen in the next 12 months.

That view was strongest among baby boomers — with half predicting a downturn — compared with 31% of Gen Z respondents.

“Americans are clearly divided when it comes to their outlook for the economy and housing market, but what stands out is the optimism among younger generations,” said Joel Berner, senior economist at Realtor.com. “Gen Z and Millennials have largely come of age in a period of high housing costs and volatile mortgage rates, yet they are more likely than older generations to believe conditions will hold steady or even improve.

“That optimism could be a powerful driver of housing demand in the years ahead, as younger buyers remain motivated to enter the market despite ongoing affordability challenges.”

Opinions on interest rates were nearly evenly split across generations — with 33% believing they will improve in the coming months, 34% expecting them to remain the same and 33% thinking they’ll get worse.

Baby boomers were most likely to anticipate improvement at 40%, while Gen X (30%), Millennials (32%) and Gen Z (31%) were less confident.

On the housing market, 40% of all respondents expect little change over the next year. Younger generations were more likely to hold a neutral or positive view.

Just 25% of Gen Z respondents said the market would deteriorate — compared with 30% of Millenials, 37% of Gen X and 36% of Baby Boomers.