Millennials Living At Home Are Buying More Luxury Goods Than Ever

It looks like adults forced to live at home due to rising inflation are finding ways to spend their money other than on rent.

According to a new report by Morgan Stanley, record numbers of millennials living with their parents are driving a luxury goods boom in the US and UK.

“When young adults free up their budget for daily necessities (e.g. rent and grocery), they simply have more disposable income to be allocated to discretionary spending,” the Morgan Stanley report said.

The analysis also pointed the US market has driven higher sales for luxury handbag and jewelry-makers including Cartier owner Richemont as well as Tiffany and Bulgari-owner LVMH.

This boom comes at a time when millennials are experiencing a sort of arrested economic development as compared to older generations.

As previously reported by ESSENCE, Bloomberg shared that 3.6 million U.K. citizens between 20 to 34 lived with their parents in 2021, which is up 1.1 million from 20 years ago, per Office of National Statistics.

The number of shared household haven’t been this high since 1971. A recent Pew Research survey found that 18% of the population has moved in with relatives in the last few years, and show no signs of slowing down. according to a survey.

More than half of the adult children who reported living with their parents said it benefits them financially. Another 30% reported they don’t pay major bills like rent or mortgage, which helps offset any debt repayment they may have. Additionally, Bloomberg pointed out that a Credit Karma survey reported that 29% of 18 and 25-year-olds are at home with family and have no plans to move out anytime soon.

Source link

We will be happy to hear your thoughts

Leave a reply

Enable registration in settings - general
Shopping cart