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- Millennial millionaires are nearly three times as likely to own homes and nearly twice as likely to be married as typical millennials, according to a new report by Coldwell Banker.
- This disparity highlights money’s critical role in achieving today’s milestones.
- In a time when housing and wedding costs are sky-high, the typical millennial is delaying homeownership and marriage until they can afford them.
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Millennial millionaires differ from the rest of their generation in more than just wealth.
They’re also nearly three times as likely to own homes and nearly twice as likely to be married, according to a new report by Coldwell Banker.
The Coldwell Banker Global Luxury program worked with wealth intelligence data and research firm WealthEngine to analyze the lifestyles of American millennial millionaires, from wealth creation and property investments to spending trends. It defined millennial millionaires as those ages 23 to 37 with a net worth of more than $1 million.
According to the report, 92% of millennial millionaires are homeowners, compared to 63% of the general millennial population. The average millennial millionaire’s real estate portfolio is worth $1.3 million across three properties.
And 67% of millennial millionaires are already married, compared to 40% of the general millennial population, states the report.
You need a lot of money to keep up with today’s milestones
These stats go to show just how critical the role of money is in achieving traditional life milestones.
Consider the costs of becoming a homeowner: A millennial buying their first home today will pay 39% more than their parents did nearly 40 years ago, according to Student Loan Hero. And it would take the median earner in the 25 largest US cities between four and 10 years to save enough cash for a 20% down payment on a median-priced home, a SmartAsset study found.
Meanwhile, the average cost of getting married in the US is $38,700, according to WeddingWire’s 2019 Newlywed report. That includes the price for an engagement ring, honeymoon, and ceremony/reception.
That’s not to mention another big milestone – becoming a parent. Finances are one of the top reasons why American millennials aren’t having kids or are having fewer kids than they considered ideal, Business Insider’s Shana Lebowitz reported, citing a survey by The New York Times.
Simply put, millennial millionaires are achieving traditional life milestones because they don’t need to wait and get their finances in order.
Unfortunately for the non-millionaire cohort, debt is one of the defining issues plaguing the generation. According to a Merrill Lynch Wealth Management report, which cited the Survey of Consumer Finances, 81% of early-adult households carry a collective debt of nearly $2 trillion. The debt includes car loans and mortgages but is mainly made up of student-loan debt and credit-card debt.