Millennials Have The Same Net Worth As Boomers

We have shown quite a few comparisons of millennials’ net worth compared to baby boomers when they were at the same age. Millennials usually don’t come off looking like they’re in good financial shape. Millennials are buying houses and having kids later in life partially because they are saddled with student loan debt.

The latest Federal Reserve analysis surprisingly shows the median household net worth of millennials is the same as it was for baby boomers when they were in their mid to late 30s. One counterpoint to the notion that millennials are doing just as well as boomers is that they are having fewer kids which lowers their expenses considerably. If millennials are moving out at a later date and not adding dependents, it makes sense their net worth is as strong as boomers.

Keep in mind, this is as of 2019 which means it doesn’t include the massive labor displacement that occurred because of COVID-19. Young people who were laid off were more likely to work at a different job than older people. 26% of the people who lose their job ages 18-29 (gen z and millennials) were at a new job, while the percentage was 8% from those 50-64.

As of the end of last year, millennials benefited from a 10-year-long bull market. They also didn’t own houses that fell in value like generation x did. To be clear, the financial crisis still hurt millennials’ earnings power. That effect from the COVID-19 crisis could be put on generation z, but it depends on how long this pandemic lasts. We can’t make long term projections at this point in its lifespan.  

REIT Collections Increase

Rent is staring to be paid after a large dip in the percentage paying during the depths of the COVID-19 crisis. As you can see from the chart below, rent collections at industrial, apartments, and offices to REITs increased 2%-3% to the mid to high 90s this summer.

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