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A windfall is set to fall into the laps of millennials over the course of the coming decades, a new report suggests, shifting the power dynamic in the economy away from boomers. <\/p>\n
That\u2019s according to property broker Knight Frank\u2019s 2024 Wealth Report<\/a> released this week, which reveals over the next 20 years $90 trillion in assets will be\u00a0transferred between generations in the U.S. alone. By Knight Frank\u2019s estimation, this shift will make affluenct millennials \u201cthe richest generation in history.\u201d <\/p>\n Previous reports show this figure at a lower $84 trillion<\/a>, but nonetheless confirms a shake-up in the foundations of spending power across the globe. <\/p>\n Indeed millennials are expected to be\u00a0five times richer in 2030<\/a>\u00a0than they were approaching the beginning of the\u00a0decade, courtesy of the Great Wealth Transfer<\/a>\u2014but it hasn\u2019t been an easy road for them thus far. <\/p>\n Millennials are among those who have been hardest hit by an increasingly inaccessible housing market<\/a>\u2014with Redfin finding<\/a> empty nesters own twice as many large homes as millennials with kids\u2014 as well as a jobs market irreversibly altered by a global pandemic.<\/a><\/p>\n Moreover they\u2019re dealing with crippling student debt<\/a>, are facing down becoming a \u2018sandwich generation\u2019<\/a> paying for both adult children and aging parents, and have long been told how lazy they are<\/a>.<\/p>\n It\u2019s perhaps no surprise, then, that a 2022 report from\u00a0Alliant Credit Union<\/a>\u00a0found that 53% of millennials are waiting on an inheritance of at least $350,000 from their parents\u2014though their boomer parents say they intend to leave $250,000 or less.<\/p>\n \u201cThere is evidence that the youth of today blame the generations before them for the challenges that they and the planet face today,\u201d said Mike Pickett, director of London-based Cazenove Capital, in the report. <\/p>\n The property broker added housing will continue to be a focus of spending for the next generation<\/a>, as those born between 1981 and 1996 may have struggled to get on the housing ladder<\/a> thus far. Even at the highest end of the income ladder, growing a property portfolio is a key concern among those born between 1981 and 1996.<\/p>\n The study shows 23% of female ultra high net worth individuals (UHNWI, valued at $30 million or above) are considering buying a home in 2024, with 21% of male UHNWI expecting to make a similar purchase this year. Wealthy Gen Zers feel the same, with 20% of those born from the mid-1990s to the early 2000s planning an acquisition.<\/p>\n But unlike those before them, younger buyers don\u2019t see housing as a way to make money. \u201cI don\u2019t think younger generations see residential property as a route to wealth creation in the same way as boomers or Gen X<\/a>,\u201d said Mike Pickett, director of London-based Cazenove Capital. <\/p>\n He added: \u201cIn particular, the low interest rate environment and impressive growth in house prices of the past 15 years is unlikely to be repeated in the next 15. I also think there is some evidence that Gen Z may be happier to rent property or lease assets such as cars, and to adopt subscription-led lifestyles.\u201d<\/p>\n And if you\u2019re hoping to reach the lofty heights of the richest 1% in the U.S. you need $700,000 more than last year. <\/p>\n The report found that breaking into the world\u2019s top 1% club is getting more difficult every year. In the U.S. in 2023, individuals needed a net worth of $5.1 million<\/a> to be considered in the richest echelons of society. By 2024 this figure rose to more than $5.8 million, an increase of approximately 14%. <\/p>\n But Americans determined to make the cut won\u2019t need as much wealth as they would in other countries. Monaco, for example, requires a net worth of $12.88 million to \u2018join the club,\u2019 an increase from $12.4 million last year. <\/p>\n However, making it into the 1% club doesn\u2019t guarantee a spot in the VIP section: ultra high net worth (UHNW). UHNW individuals need to have $30 million to their name in order to be considered in the pack\u2014a figure well above the 1% for most nations. <\/p>\n Those in this illustrious group have also seen their net worth climb higher in the past year, with the AI boom helping the world\u2019s richest add $150 billion to their portfolios<\/a>.<\/p>\n<\/div>\nHousing focus<\/h2>\n
Reaching the 1%<\/h2>\n
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