Did you know that nearly half of 18 to 29-year-olds in the United States are still living at home?(!) That’s the highest this statistic has been since 1940.
But unlike their forebears, this wave of Gen Z and young Millennials aren’t always saving up for typical life milestones like buying homes or paying for weddings. More and more, they’re rooming with their parents so they can buy luxury goods — like Birkins. And honestly, they may be onto something.
With interest rates on a 30-year fixed mortgage hovering at 7%, high inflation, and an evaporating sense of job security, the economic landscape doesn’t exactly make a young professional feel warm and fuzzy about tying their financial future to a house.
What’s more, many Gen Z and young Millennials are old enough to remember of the magnificent housing market crash of 2007/2008 — and while I’m pretty sure the experts keep saying that’s not going to happen again, it is giving some of these would-be buyers pause.
“Right now buying a Cartier watch is a way more tangible investment because once I’ve bought it it’s mine – you can’t say the same for a mortgage,” one Millennial explained. “And unlike a [down payment], you don’t wake up one day with ten years’ worth of savings gone in a moment.”
On the other hand, some luxury investments (like a Birkin) have never gone down in value, and have track records of appreciating at a consistent clip year over year. In fact, Credit Suisse recently named luxury bags as one of the best hedges against inflation in our current market. Add to that the fact that a Birkin requires far less savings than a house and you can start to see where this trend might… possibly… make some sense?
Would you be willing to have a curfew again to get a Birkin? Let us know in the comments!