Have you seen those Progressive commercials where a therapist specializes in stopping young homeowners from turning into their parents?
That idea is based in reality. A new article on Business Insider says that while millennials “have long had a ‘forever young’ air to them,” the reality for many is that they’re “starting to more closely mirror their parents. They’re catching up on earnings and wealth, and while they’re still behind on homeownership, they’re not screwed. It may have taken them a while to settle down, but they’re getting around to it and heading to the suburbs.”
If you still think of millennials as young kids with no money or acknowledge that they’re all grown up but poorer than their boomer or Gen X parents, you’re wrong. Business Insider cites Bureau of Labor Statistics earnings that show in 2023, younger adults (ages 23-34) earned $54,340 a year, virtually the same as that age group did in 1979 ($52,208). Older millennials (age 35-44) earned $65,000 in 2023, up slightly from the $57,304 that age group earned in 1979.
Net worth stats tell the same story. Millennials ages 35-44 had a median net worth of $135,300 in 2022, according to the Survey of Consumer Finances. In 1989, that age group’s net worth was $130,380. And for the younger crowd, adults under 35 had a much higher net worth in 2022 ($39,040) than in 1989 ($18,740).
The common lament about millennials is that they can’t afford to buy a home. But Jessica Lautz, the deputy chief economist and vice president of research at the National Association of Realtors, told Business Insider that while the homeownership rate for people under 35 is “lower for millennials than it was for boomers and Gen Xers at the same age,” some millennials are “getting where they want to be.”
And Daryl Fairweather, the chief economist at Redfin, told Business Insider that “over half of millennials were homeowners” as of 2022. That’s not far off from where Gen X was at that age. Fairweather noted that boomers have held onto their homes, limiting inventory, but that will soon shift.
But Fairweather says there is a “big trade-off.” As Lautz explains—a plurality is moving to the suburbs where houses are more affordable. And there’s good news for businesses that sell home “stuff.” As another Business Insider article explains, millennials are not minimalists—they’re actually avid consumers.
Rieva Lesonsky is President of Small Business Currents, LLC, a content company focusing on small businesses and entrepreneurship. While you can still find her on Twitter @Rieva, you can also reach her @Rieva.bsky.social and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
Millennial and parent picture by Dmytro Zinkevych /Shutterstock
