According to several recent articles the financial problems of millennials is leading to changing behaviors and purchase patterns as well as broader societal shifts.
For example, the New York Times article No Picket Fence: Younger Adults Opting to Rent focuses on the shift away from home ownership and towards renting by young adults. Key quote:
Since 2008, the year Lehman Brothers collapsed and home prices dropped precipitously, there has been a steady increase in the number of people ages 18 to 34 renting instead of buying homes. About 875,000 more households are now made up of young adult renters than would have existed if the 2008-era trend had held steady, according to an analysis of census data by Jed Kolko, chief economist at Trulia, a real estate marketing website.
HufPo's Are Millennials Too Poor for Parenthood presents a stark view of the financial condition of millennials and suggest they simply will not be able to afford kids. Key quote:
Massive student loan debt, stagnant wages, increased cost of childcare and a lack of adequate health insurance benefits may have brought an end to the American family as we once knew it.
The article goes on to list a series of depressing stats on millennial finances, including:
- Average Millennial student loan debt: $33,000. [USA Today]
- The Millennial unemployment rate is 11.5%, almost double the national average overall. [Generation Opportunity]
- Nearly ⅓ of Millennials have delayed marriage and children due to the recession. [Pew Research]
- Average childcare costs has risen to $12,000/yr [Pew Research], causing a dramatic increase in new stay-at-home moms, as it is more cost-effective for many woman to stay at home than work a part-time or full-time job.
- 42% of employers intend to hire temporary or contract workers as part of their 2014 staffing strategy -- a 14% increase over the past five years. [Career Builder] As a result of this staffing strategy, employees are left without health insurance coverage for their families.
- 50% of Millennials do not believe that Social Security will exist when they reach the age of retirement. [iOme Measure of Millennials]
The decline in marriage and birth rates, especially by millennials, are trends we cover in more detail in our Demographics section. These shifts are real, pronounced and leading to major changes in family make-ups, housing patterns and many other aspects of American society.