No, it’s NOT crazy that you’re in your 30s and don’t own a house, and this new study tells us why. According to a worldwide report, millennials in their early 30s earn less than people born before the 1980s.
Resolution Foundation, a UK-based think tank, found that millennials make on average 4 percent less than Generation X did at the same age. (In case you’re unsure, millennials are generally considered to be born between 1980 and 2000; Generation Xers were born from 1966 to 1980.)
The U.K. stood out for its drastic decrease in homeownership rates. For late-20s millennials, just 33 percent own homes compared with 60 percent of baby boomers. “Exceptional progress in generation-on-generation wealth levels has ground to a halt for younger generations who are now experiencing a decline,” the think tank reported. “Similar effects have been experienced by the US, but these are far more recent – starting only after the crisis – and smaller.
The report looked at eight high-income countries, and out of those countries, only two had positive results: Norway and Denmark. Denmark is especially notable for making better progress considering it underwent a similar recession to the U.K.’s.
“It’s no secret that the financial crisis hit the vast majority of advanced economies hard, holding back millennial income progress in countries around the world,” said Daniel Tomlinson, a policy analyst at the Resolution Foundation, to Bloomberg. “But only Spain echoes the U.K. experience — a ‘boom and bust’ cycle where significant generation-on-generation gains for older generations have come to a stop for younger people.”