1Based on student loans and mortgage debt members of Generation X have been disproportionately harmed by the recent economic downturn. If you own a home that is substantially underwater you need to evaluate if keeping an asset that is devastating your net worth is something you want to do.
While Baby Boomers (born before 1965) are a more wealthy demographic than the generation that predeeded it, Generation X (born 1965-1982) is less wealthy than the Baby Boomers. The reason is the housing bubble. Most of a middle class American’s wealth is in equity in their home. Based on when Generation X was in the market to purchase a home very few have any equity in their homes and in fact have significant negative equity that is destroying their net worth. Many Gen X’ers are therefore presented with the decision to walk away from an underwater home, or stay in a home that will never be worth what they paid for it.