Contrary to the stereotype of being careless with money, millennials are actually on track to become the wealthiest generation ever, according to a recent study.
Individuals born between 1981 and 2000 are poised to receive a significant financial gain over the next two decades, as per research conducted by real estate agency Knight Frank.
This is due to the property assets passed down by previous generations. Although the distribution of wealth is changing among different parts of the world, an even more significant change is occurring between age groups.
The switch will witness $90tn (£71tn) of assets transferring between generations in the US alone, positioning affluent millennials as the wealthiest generation in history, according to Knight Frank’s 18th annual wealth report.
According to the research, 75% of millennials anticipate a growth in their wealth in 2024, compared to 53% of baby boomers, 56% of gen X, and 69% of gen Z.
Many millennials are currently experiencing the impact of various economic challenges, starting with the 2008 crash and continuing with subsequent financial difficulties due to the pandemic, Brexit, and the war in Ukraine.
Due to the increase in rent prices, a large portion of their earnings has been used to cover housing expenses, making it difficult for them to purchase their own homes or save for retirement.
There is a perception that millennials have diverted their funds from saving for property to spending on expensive hobbies and avocado toast.
Actually, their upcoming financial strength will probably depend on the inheritance they receive from previous generations, such as property.
Millennials Embrace Sustainability Amid Financial Struggle
Contrary to the stereotype of being careless with money, millennials are actually on track to become the wealthiest generation ever, according to a recent study.
According to Liam Bailey, the global head of research at Knight Frank, the change in wealth is expected to support sustainable investments and behavior.
“It seems that Millennials have embraced the idea of reducing consumption, with 80% of male and 79% of female respondents stating that they are actively working to reduce their carbon footprints,” he noted.
A recent study by the Resolution Foundation revealed that British millennials continue to feel the effects of the 2008 financial crisis, making it challenging for them to reach the same living standards as older generations.
According to the Knight Frank study, property, financial investments, and cars were identified as the most important contributors to wealth.
Within the smaller items category, the market for secondhand bags experienced a decrease, while the fine wine market saw a slight growth.
Sales of watches at the three major auction houses reached £488m in 2023, showing a slight uptick from the previous year.
Canadian rapper Drake purchased a ring previously owned by the late Tupac Shakur for $1 million at Sotheby’s hip-hop auction last July.
