According to a survey by global real estate consultancy Knight Frank, millennials will most certainly become “the richest generation in history” as a result of a massive wealth transfer over the next decade.
The upcoming annual Wealth Report will provide a comprehensive analysis of global property and economic trends.
It discovered that, over the next 20 years, the so-called silent generation (those born between 1928 and 1945) and baby boomers (those between 1946 and 1964) will “hand over the reins” to those born between 1981 and 1996 as they pass on their property- and equity-rich assets.
In the United States alone, Knight Frank predicted that $90 trillion in assets would flow between generations, “making affluent millennials the richest generation in history.”
Research indicates that millennials and Gen Z people struggle to achieve the same milestones as earlier generations, making it challenging for them to invest in their future. Gen Z is broadly defined as persons born between 1996 and 2012.
Soaring rents, soaring inflation, and school debt have all contributed to millennials’ inability to buy their own houses or save. For years, millennials have been portrayed as lazy, avocado toast eaters who spend money on pricey coffee.
According to Liam Bailey, global head of research at Knight Frank, the wealth shift is occurring amidst “seismic changes” in how assets are used.
Climate change, for example, is one area where investment priorities differ significantly over generations.
“Millennials appear to have got the message when it comes to cutting consumption – 80% of male and 79% of female respondents say they are trying to shrink their carbon footprints,” Bailey said in a statement.
In comparison, just 59% of male boomers attempted to decrease their influence, which was much lower than their female counterparts’ 67%.