credit and debt
MILLENNIALS BETTER OFF THAN GEN-XERS & BOOMERS? YAAAS
two cohorts were the same age as the millennials are today and adjusted for inflation , shows that millennials are carrying a higher median mortgage, at $218K, than Gen Xers ($117K) or Boomers ($68K). It's worth noting, however, that not only are the values of millennials’ homes higher than their peers of the same age (by between 80% and 139%), so too are their incomes (by 27% and 28%), as well as their net worth. This is not to say millennials aren’t facing very real financial challenges—they are— but considering these data in the context of vastly improving labour market prospects over the next two decades adds a different dimension to the conversation.
High home prices. Soaring rent. Low- paying jobs. Expensive tuition. Crippling debt. While these financial features are often associated with today’s millennial generation, it turns out—surprise—that things are a little more nuanced than the headlines suggest. It is beyond argument that rents and home prices, especially in Metro Vancouver, are higher than they’ve ever been (the recent stagnation in rents and decline in home prices notwithstanding), and the same goes for tuition. Indeed, a recent study by Statistics Canada comparing the financial situation of millenials to their Gen-X and Baby Boomer counterparts when the latter
MILLENNIALS: PRICIER HOMES & HIGHER INCOMES...BUT MORE DEBT
$350,000
$329,000
$300,000
$250,000
$218,000
$200,000
$182,441
$150,000
$137,723
$117,481
$100,000
$83,197
$65,523
$67,802 $64,800
$50,000
$0
MILLENNIALS
GENERATION X
BABY BOOMERS
PRINCIPAL RESIDENCE VALUE
MORTGAGE ON PRINCIPAL RESIDENCE
AFTER TAX HOUSEHOLD INCOME
SOURCE: SURVEY OF FINANCIAL SECURITY & ASSETS & DEBT SURVEY, STATISTICS CANADA
DATA: MEDIAN VALUES, 2016 DOLLARS
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