(NEXSTAR) — Millennials areoften stereotypedas lazy, entitled, and less wealthy than baby boomers. But the younger generation is not uniformly worse off, a new study claims.
They are, however, facing a widening wealth gap.
“The wealthiest millennials now have more than ever, while the poor are left further behind,” said the study’s lead author Rob Gruijters, an associate professor of education and international development at England’s University of Cambridge.
Millennials in their mid-30s are more likely to work low-paying service jobs and live with their parents, researchers found, but those with affluent middle-class lifestyles often have more wealth than boomers did at the same age.
The study, published in the American Journal of Sociology in September 2023, examined the work and family life trajectories of more than 6,000 boomers and 6,000 millennials in the U.S. It compared how these life decisions impacted their wealth by the time they turned 35.
Researchers from the University of Cambridge in the UK, Humboldt University in Germany, and Sciences Po University in France analyzed data from theNational Longitudinal Survey of Youth, a program of the U.S. Bureau of Labor Statistics, for the study.
Here are some of their key findings:
- Wealth:Millennials at the 90th percentile of wealth distribution in the U.S. possessed about 20% more wealth than boomers did at 35 ($457,000 vs. $373,000). However, the median millennial had 30% lower wealth than the median boomer at that age ($48,000 vs. $63,100).
- Career:Boomers were more likely to land high-status jobs, like lawyers or surgeons. Around 17% of boomers moved into “prestigious” career paths after graduating college, whereas just 7.3% of millennials did so.
- Homeownership:About 62% of boomers had become homeowners by 35, contrasting with the 49% homeownership rate among millennials at that age. Additionally, 10% of millennials lived with their parents at 35, compared to only 6% of boomers.
- Marriage:Millennials tended to postpone marriage. Approximately 27% of boomers got married and had children earlier, while only 13% of millennials followed a similar path.
- Debt:Millennials were also more likely to be in debt: 68% held any kind of debt at 35, compared to 43% of boomers.
- Net worth:About 14% of millennials had negative net worth by 35, which means their debts exceeded their assets, compared to only 8.7% of boomers.
Researchers claim the distribution of wealth among millennials is so uneven because the economic rewards for middle and upper-class lifestyles have increased, while those for the working class have either remained the same or declined.
“Individuals with typical working class careers, like truck drivers or hairdressers, used to be able to buy a home and build a modest level of assets, but this is more difficult for the younger generation,” said Gruijters.
According to the National Association of Realtors, the median age of first-time home buyers in today’s market is 36 — the oldest since the agency started collecting this specific data in 1981.
The NAR said that even though millennials are currently the largest American generation, they saw a “shrinking share” of buyers in the housing market last year. The agency said low inventory, high interest rates, and rising home prices are factors that could turn away potential buyers.
As for the wealth gap, researchers said progressive measures like wealth taxation, universal health insurance, a higher minimum wage and access to stable housing may help tighten it.
“We need to make it easier for those who are currently being left behind to accumulate wealth in the first place,” said study co-author Anette Fasang, a professor of microsociology at Humbolt University. “A slow and tentative approach won’t suffice. Significant action is needed to build a more equal society, where more people can experience some form of prosperity.”
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FAQs
When looking at baby boomers—currently aged 59 to 78—the researchers found economic outcomes a bit more mixed. While it's true the average millennial has 30% less wealth at age 35 than boomers at the same age, the richest 10% of millennials have 20% more wealth than the richest boomers did.
Which generation has it the hardest financially? ›
Gen Zers are having a harder time making ends meet, let alone building wealth. Roughly 38% of Generation Z adults and millennials believe they face more difficulty feeling financially secure than their parents did at the same age, largely due to the economy, according to a recent Bankrate report.
Are millennials struggling financially? ›
Many struggled to get jobs, particularly following the Great Recession, when the nation's unemployment rate hovered around 10 percent for over a year. Their wages took a massive hit, too. On average, millennials lost about 13 percent of their earnings between 2007 and 2017, according to economist Kevin Rinz.
Is the economy worse for millennials? ›
Key Survey Findings
68% of millennials “agree” and “strongly agree” they have more, tougher financial obstacles than previous generations. Roughly half of the millennials polled feel that their generation has faced the worst overall economic environment.
What generation holds the most wealth? ›
Key Takeaways
- Wealth is determined by an individual's net worth.
- Baby boomers have the most wealth among four recorded generations.
- Other generations have less wealth, but it's not necessarily an indication of financial problems.
Generation Z is America's most diverse cohort yet — but they're united by deep anxieties about the world around them. Why it matters: A collision of political, economic and social trends has minted a generation in which huge numbers of people struggle to cope with the present and feel even worse about the future.
Do millennials have it harder than boomers? ›
Gen Zers and millennials have it harder than boomers did with college debt and buying a home—but they're much better about saving | Fortune.
Is life harder for millennials? ›
But on many fronts, Millennials are struggling. Incarceration rates among Millennial young adults are dramatically higher than they were when members of the Silent Generation and Baby Boom were the same age. The federal minimum wage hasn't risen since 2009, but inflation and cost of living have.
Will Gen Z be better off than millennials? ›
Millennials were somewhat better off than Gen X—those born between 1965 and 1980—when they were the same age. Zoomers, however, are much better off than millennials were at the same age. The typical 25-year-old Gen Z-er has an annual household income of over $40,000, more than 50% above baby-boomers at the same age.
What generation has the most debt? ›
The Gen X debt situation
The cohort also has the largest share of people with debt, nearly 99% carry some type of balance, LendingTree found. Gen Xers led the way in three of the four categories analyzed. The group — between 44 and 59 years old — has the highest median credit card, auto loan and student loan balances.
From rising home prices to rising mortgage rates and inflation, the millennial generation hasn't had it easy when it comes to homeownership. But new data from Realtor.com shows that millennials aren't overly burdened in comparison to previous generations.
What is the top three problems of millennials today? ›
What are the most common challenges among millennials?
- Low-paying Jobs/ Unemployment. Sad to say, wages remain unmoved despite inflation. ...
- Technology Addiction. ...
- Cancel Culture. ...
- College Debt. ...
- Discrimination. ...
- Substance/ Alcohol/ Sex Addiction. ...
- Violence/ Bullying. ...
- Less Human Interaction.
We all went through pandemic, but for them: wage stagnation, Great Recession, unprecedented levels of college student loans to pay back, delays in buying a home. Am I missing anything? Chris Farrell: No, those are the main reasons why millennials, they've been called the unluckiest generation and the lost generation.
Which is the unhappiest generation? ›
Jessica Burbank and Amber Duke react to new findings in the world happiness report that a great percentage of the Gen Z population is unhappy.
Which generation is the smartest? ›
A growing discourse suggests that Generation Z (Gen Z) is endowed with higher cognitive abilities compared to their predecessors, the Millennials. This assertion prompts an exploration into the unique characteristics and experiences that might contribute to the perception of heightened intelligence within Gen Z.
Which generation is the most generous? ›
Baby Boomers and Donation
When it comes to the trend of giving, baby boomers are the generation that donates the most. These individuals make up a whopping 43 percent of charitable giving! Baby boomers make up most of the population in the US and are at a life stage where donating is typically easily affordable.
What generation is currently in the most debt? ›
(NewsNation) — Mortgages make up the bulk of household debt but a new analysis shows most Americans owe thousands of dollars beyond their home loans, with members of Gen X carrying the highest balances.
Which generation is the toughest? ›
While 45% of those surveyed described Gen Z as the most challenging to work with, this dropped to 26% for millennials, 13% for Gen X, and 9% for baby boomers. In the end, being “difficult” is probably just another rite of passage.
What generation has the lowest income? ›
As a whole, however, Gen Z had the lowest salaries in the country — specifically Gen Z in West Virginia, with a median income of $27,380.
Do Gen Z have more money than millennials? ›
GENERATIONAL SPENDING POWER
For example, the average 25-year-old earns an annual salary of $40,000, higher than all other generations when they were the same age. The higher incomes have resulted in bigger spending habits from Gen Zers.
