#1 Things Are Getting More Expensive, And Wages Are Stagnating. We Will Die
American novelist Gertrude Stein coined the term “lost generation” during the “Great War.” According to accounts, she heard it said by a garage owner speaking to a young employee.
Fellow author Ernest Hemingway then used it as an epigraph to his 1926 novel, “The Sun Also Rises.” It was believed to be an accusation towards younger people in their 20s and 30s and their supposed lack of purpose during the First World War.
In our intro, we discussed a common trait among many boomers: their unwillingness to change their old ways of thinking and doing things. As it turns out, some do so out of necessity.
An April survey by real estate company Redfin revealed that 78% of older Americans would choose to stay in their current homes, many of which are larger houses that used to accommodate their children.
Aging in place, as it is known, is when baby boomers refuse to leave their homes because there isn’t much financial incentive if they let it go. 54% have no mortgage, and 46% have lower interest rates. It would be unwise to shell out much more for a new home.
However, aging in place has caused a housing shortage since empty nesters own 28% of three-bedroom houses in the United States. That leaves only 14% for millennials with children.
And with a shortage comes price hikes. In May, Bankrate released a report revealing that the median home sale price as of that month was $419,300, a 5% increase from 2023.
Many millennials grew up following a general life path paved by their parents: get a good education and a stable job to eventually own a home and raise a family. However, getting to step three has been nearly impossible, thanks to the housing crisis.
This has urged many to delay marriage and having children. A recent survey by the Pew Research Center revealed that the average marrying age for a man is 30 and 28 for a woman. That’s a four-year delay for both genders compared to 1987.
Student debt is another obstacle for many millennials. A 2019 triennial survey of consumer finances revealed that the net worth of millennials aged 35-44 is 20% lower than that of their baby boomer and Gen X counterparts.
According to a 2023 Forbes report, the median student loan repayment amount of $25,000 to $30,000 per borrower could be a factor. Given such a debt load, many cannot afford long-term savings for a down payment on a home or retirement.
For Gen Z, mental health has been an issue. According to research by the Walton Family Foundation, people under the age of 25 are twice as likely to battle depression and feelings of hopelessness. They are also thrice as likely to contemplate self-harm.
For experts from Hofstra University, the obsession with technology and social media could be one reason. Associate professor Jamie Mitus says tech addiction may result in psychological disorders like depression, repetitive motion disorder, anxiety, and sleep deprivation, to name a few.
“When you’re getting a device at five years old, you haven’t developed that ability to regulate yet,” he explained. “So it’s easier to slip into the impulsivity of using the technology and having a harder time breaking away from it.”
