#536
A Tale of Two Millennials
Published:
Apr 20, 2024
Author:
Sarah Parsons Wolter
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We’ve all heard the tiresome generational battles between boomers and millennials. But now there's a plot twist. The real conflict might just be brewing within the millennial generation itself, and this time it’s over housing. Housing affordability is a major issue in the U.S. and the U.K. – especially for many millennials who have struggled to build wealth.
A recent U.K. study found that the top 10% of millennials hold property wealth of £300k, nearly triple that of their boomer counterparts at the same age. Similarly, American millennials in the richest decile enjoy a net worth that is 20% higher than boomers. How could this discrepancy in wealth occur? Parental assistance. Research from Redfin shows that 36% of young Americans and 33% of those in the U.K. had family aid when buying their first home. The richest Brits received £170k from parents compared to the average of £25k!
Elsewhere around the globe, in addressing this disparity in the generational wealth transfer Canada has announced it would raise capital gains taxes, aiming to invest tens of billions of new tax revenue into young home ownership efforts. This could have a strong impact on how Canadians compete for homes, yet it remains to be seen if it will be enough, or if they will continue to rely on the bank of Mom and Dad for housing help.
Portfolio News
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A Tale of Two Millennials
Forget boomers vs millennials, the next conflict is millennials vs each other - Although the average millennial is less wealthy than boomers at their age, the richest far exceed their older counterparts. This has struck a tale of two types of millennials in the housing market, especially those with familial assistance. Read more
Canada hikes capital gains tax to raise billions for housing - Canada will raise capital gains taxes on businesses and wealthy individuals to help pay for tens of billions in new spending aimed at making housing more affordable and improving the lives of young people. Read more
Millennials are coming for your golf communities - Once the quiet refuge for retirees, golf communities are now the new hot spot for affluent millennials who are looking to get more for what they pay for in their first homes. Read more
Industry News
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Select Financings
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