Research Indicates $90 Trillion Wealth Transfer to Affluent Millennials in the US Alone.
A study by real estate agent Knight Frank suggests that millennials, born between 1981 and 2000, are on track to become the wealthiest generation in history, largely due to the property assets accumulated by previous generations. The report predicts a “seismic” windfall for millennials over the next 20 years, with $90 trillion of assets expected to move between generations in the US alone.
While millennials have often been criticized for their spending habits, the study indicates a significant shift in wealth distribution. According to the research, 75% of millennials expect their wealth to increase in 2024, compared to 53% of baby boomers, 56% of Gen X, and 69% of Gen Z.
Despite economic challenges such as the 2008 financial crisis, the pandemic, Brexit, and war in Ukraine, millennials are poised to inherit substantial wealth, primarily in the form of property. This inheritance is likely to shape their future financial stability.
Liam Bailey, global head of research at Knight Frank, believes that this shift in wealth could lead to increased efforts in sustainable investments and behavior among millennials. The study also highlights the growing number of female ultra-high net worth individuals, suggesting a positive trend in wealth creation among younger generations.
However, the economic scars of the 2008 financial crisis still affect British millennials, who are struggling to catch up with the living standards of older groups. Despite these challenges, property, financial investments, and cars remain significant sources of wealth for millennials, according to the report.
The study also notes trends in smaller luxury items, such as secondhand bags and fine wine markets, as well as notable purchases like Canadian rapper Drake’s acquisition of a ring formerly owned by Tupac Shakur at a Sotheby’s auction.