Canadian millennials, especially homeowners, are expected to face significant economic damage and high interest costs in the coming months due to rising interest rates, according to a report by RBC, leaving them vulnerable to job losses and straining their high levels of debt.
Canadian Millennials are struggling financially compared to previous generations, with higher levels of debt, stagnant incomes, and less disposable income, which could amplify the impact of an economic downturn, while Boomers are faring much better.
The U.S. housing market is currently experiencing a decrease in affordability due to high mortgage rates and stubbornly high prices, with affordability levels lower than during the 2006 housing bubble; however, experts do not predict a crash in the market due to a shortage of homes and a more stable lending environment.
Canadian real estate and the economy are facing challenges, with slowing growth, high debt for millennials, increased fixed-rate mortgages, rising housing prices as an inflation risk, and low mortgage growth prompting concerns.
The average price of cars in America has risen recently, causing financial strain for Gen Z and millennials, especially due to rising interest rates and high levels of auto loan delinquency.
Hong Kong's ultra-wealthy population decreased by 23% in 2022, while New York and Singapore saw growth, according to a report by Altrata, with China's Covid-19 restrictions, economic slowdown, geopolitical issues, and equities slump cited as reasons for the decline. However, Altrata predicts that the global super-rich population will rebound by 2027, reaching 528,100 individuals with a net worth of $60.3 trillion.
Asia experienced the largest decline in its ultra-high-net-worth population in 2022, with a 10.9% drop attributed to factors such as China's Covid lockdown and the war in Ukraine, while India was the only country to see a rise in its ultra wealthy individuals, according to a report by data firm Altrata.
The surging stock market and rebounding property values have driven U.S. household wealth to a record high of over $154 trillion in the second quarter, fully recouping losses from last year's bear market, according to Federal Reserve data.
The aging population in America, particularly the boomers, is driving up housing demand and prices, leading to an affordability crisis and locking out middle-income buyers in the market.
Gen Z is more optimistic about homeownership than millennials, with a lower percentage believing it will be impossible in their lifetime, and while both generations face barriers to homeownership such as high home costs and student loan debt, Gen Z is doing a better job of saving and has a slightly higher rate of homeownership compared to millennials and Gen X at their age.
The share of wealth held by people under 40 in the UK has sharply declined, raising concerns about a potential increase in pensioner poverty in the future, as younger generations are already facing financial challenges and are unable to save enough for retirement.
Despite increased household wealth in the US, millions of households are struggling financially due to inflation, high interest rates, and rising living costs, which have led to record levels of debt and limited access to credit.
US household income fell by the most in over a decade in 2022, showing the impact of rising costs and the expiration of pandemic relief programs, with the median income dropping 2.3% and marking the third consecutive annual decline, contributing to concerns about the financial well-being of American families.
Millennials and Gen Zers are concerned about the financial impact of baby boomers, as they believe the older generations' choices have contributed to their current financial struggles, including high student debt and difficulty affording housing, while boomers hold a majority of the nation's wealth.
Americans are facing persistent inflation and a high cost of living, but elite economists and academics are disconnected from the reality and dismissive of the struggles of everyday Americans.
