Millennials Mirror Baby Boomers in Wealth, Homeownership Trends

Millennials, once known for their ‘forever young’ mentality, are increasingly resembling their baby boomer parents in terms of wealth accumulation and suburban homeownership. Despite a delayed start due to economic challenges, millennials are catching up financially and settling into lifestyles reminiscent of their parents’ generation.

According to the Bureau of Labor Statistics, median weekly earnings for millennials aged 25 to 34 reached $1,045 in 2023, a 4% increase from 1979 when adjusted for inflation. For those aged 35 to 44, wages rose by 13% to $1,250. Wealth-wise, millennials are also faring well, with those aged 35 to 44 boasting a median net worth of $135,300 in 2022, slightly higher than the $130,380 recorded in 1989.

William, a 31-year-old lawyer from Philadelphia, reflects on how his life parallels his father’s. ‘You realize that they are much more in you than you were maybe comfortable with,’ he said. ‘It’s like the apple doesn’t fall far from the tree, to be cliché.’

Millennials are also more engaged in investing than their parents. A Charles Schwab survey found that millennials began investing at age 25 on average, compared to 35 for baby boomers. Faith Bergman, a 28-year-old fintech professional in New York, credits her financial literacy to modern resources. ‘Investing, especially as a woman, has not always been a common theme or practice,’ she said. ‘I think it’s more of just a lack of awareness.’

Homeownership, however, remains a challenge. The median age of first-time homebuyers has risen to 38, compared to the late 20s in the 1980s. Daryl Fairweather, chief economist at Redfin, noted that millennials are closing the gap with older generations but are still behind by five to 10 years. ‘Millennials aren’t locked out of the housing market forever; they’re just not getting there until middle age,’ she said.

Despite these strides, disparities persist. Wealthier millennials are outperforming their parents, while those from lower-income backgrounds struggle. Rob Gruijters, a sociologist at the University of Bristol, emphasized that ‘overall distribution of wealth has become more unequal within generations and also across the board.’

As millennials age, they are increasingly recognizing their parents’ influence in their lives. Victoria Lamson, a 37-year-old public relations professional in San Francisco, acknowledges her parents’ impact on her values and lifestyle. ‘There are definitely moments that I have said, ‘because I said so,’ just like my parents did,’ she said.

While millennials may not have outdone their parents, they are proving resilient in the face of economic challenges. As Laurence Kotlikoff, a professor of economics at Boston University, noted, ‘Even if they were in some ways keeping up with where they should have been had nothing changed in the economy, the massive fiscal gap that the country’s facing is going to land on their heads as they reach retirement.’