Millennials: we’ve never had it so tough

For millennials* the financial headwinds are legion. Previous generations grew up with the understanding that they should never need to spend more than a third of their income on rent or housing costs. Now consider the case for millennials who are looking at having to allocate some 45% of their income just to keep a roof over their heads. A second punch to the gut is student debt. Right now there’s some US$1.5 trillion in student debt outstanding and the average student loan per capita for a millennial is just over US$37,000 dollars.

Against this background, US home prices have increased 29% since 2000 but millennials’ real median income has only gone up by 1%.

With a triple whammy of higher housing costs, rising debt and lower wages we think it’s no exaggeration to say millennials have it hard.

Chris Kelly – head of Commercial Real Estate. Amherst, a BNY Mellon company

*Defined as individuals born between 1982 and 2000.

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