Millennials in Better Financial Condition Than Previous Generations

From coming of age in the wake of the Great Recession to bearing much of the brunt of today’s soaring home prices, many people seem to think millennials have it pretty bad.

Contrary to that belief, the latest LendingTree study indicates millennials are in a better financial position than their Generation X and baby boomer counterparts at similar ages — particularly regarding net worth, assets, income and spending.

Here’s what we found.

Key findings

• When adjusted for inflation, millennials appear to be in a better financial condition than Gen Xers or baby boomers at similar points. In 2022, millennials (ages 26 to 41 at the time) had a median net worth of $84,941. In 2007, Gen Xers (ages 27 to 42 at the time) had a median net worth of $78,333 in 2022 dollars. In 1989, baby boomers (ages 25 to 43 at the time) had a median net worth of $58,101 in 2022 dollars. That means millennials’ net worth was 8.4% higher than Gen Xers’ and 46.2% higher than baby boomers’ at those ages.
• Millennials are more likely to have assets and carry debt than other generations at similar ages. 99.3% of millennials had assets in 2022, while 97.5% of Gen Xers and 93.8% of baby boomers had assets when they were around the same ages. Meanwhile, 88.1% of millennials carried debt in 2022, compared with 86.9% of Gen Xers and 85.8% of baby boomers around that age.
• Midpoint millennials have a higher median cumulative income than older generations. Millennials born in 1989 earned a median of $446,570 between 2014 and 2023 (ages 25 to 34). When the midpoint Gen Xers and baby boomers were 25 to 34, the median cumulative income was $417,700 and $362,330, respectively, in 2023 dollars.
• Still, millennials face significantly higher rent costs and homeownership hurdles. Adjusted for inflation, the median rent in 2024 for midpoint millennials age 35 is $1,481. That’s considerably more than the $1,251 for midpoint Gen Xers in 2008 and the $1,174 for midpoint baby boomers in 1990. Additionally, a 20% down payment on a median home purchase in 2024 is a breathtaking $85,960, compared with inflation-adjusted amounts of $69,305 in 2008 and $57,107 in 1990 — though comparatively low interest rates benefit millennials.
• Looking at overall expenses, millennials spent more money than boomers, but a smaller portion of their income. When midpoint millennials turned 33 in 2022, younger adults ages 25 to 34 spent an average of $67,883 across all items that year. When Gen Xers were of a similar age in 2006, they spent an average of $69,084 in 2022 dollars, and baby boomers spent an average of $63,761 in 1988. But factoring in average pretax income, those millennials spent 75.8% of their annual income — far less than the 83.2% spent by Gen Xers and 91.0% spent by baby boomers.

Millennials’ net worth is higher than older generations’ at their age

Millennials have a higher net worth than older generations at their age. In 2022, millennials ages 26 to 41 had a median net worth of $84,941.

In 2007, Gen Xers — similarly aged at 27 to 42 — had a median net worth of $78,333 when adjusted to 2022 dollars. Meanwhile, in 1989, baby boomers — ages 25 to 43 at the time — had a median net worth of $58,101 in 2022 dollars.

That means millennials’ net worth was 8.4% higher than Gen Xers’ and 46.2% higher than baby boomers’ at those ages.

Net worth by generation (at similar ages)

Source: LendingTree analysis of Federal Reserve Survey of Consumer Finances (SCF) data. Note: All figures are adjusted to 2022 dollars to account for inflation.

Several major historical events influenced net worth across generations. Most notably:

• Baby boomers experienced multiple recessions in the early 1980s. Stock market volatility also impacted baby boomer investors — particularly Black Monday, a major stock market crash in 1987. In the early stages of their careers, baby boomers fought high inflation rates, which lasted from 1965 to 1982.
• Gen Xers experienced the dot-com bubble and subsequent bust in the late 1990s and early 2000s, when investments in internet companies skyrocketed. Not long after, Gen Xers experienced the brunt of economic uncertainty and market volatility after 9/11. In 2007, the housing market bubble was at its peak. In fact, 75% of Gen X homeowners bought theirs in 2000 or later, according to 2011 research. Still, Gen Xers were the first to experience nearly equal labor force participation between men and women, which may have helped them maintain higher net worths despite these events.
• Millennials are better educated than their predecessors, allowing for better employment opportunities. The Great Recession of 2007 to 2009 occurred close to the start of many millennials’ careers. However, by 2018, employment among millennials was largely equal to other generations when they were the same age. Millennials are more likely to delay major milestones like marriage and homeownership, and they also are more likely to live at home (and for longer periods). That’s particularly true after the COVID-19 pandemic, which prompted many millennials to move back home. Delaying these milestones and living at home frees up more money for millennials.

Matt Schulz — LendingTree chief credit analyst and author of “Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life” — believes prior generations’ struggles have helped prepare millennials.

Overall, 86.6% of millennials had a positive net worth (meaning their assets were worth more than their liabilities) in 2022, compared with 86.1% of Gen Xers in 2007 and 83.9% of baby boomers in 1989.

Millennials more likely to have assets, carry debt

Most Americans have assets (what you own) and debts (what you owe). While the goal is to strike a fine balance, millennials are more likely to have assets and carry debt than other generations at similar ages.

Overall, 99.3% of millennials had assets — like cash, property or investments — in 2022. Comparatively, 97.5% of Gen Xers and 93.8% of baby boomers had assets when they were around the same age.

Assets and debt by generation

Source: LendingTree analysis of Federal Reserve SCF data. Note: All figures are adjusted to 2022 dollars to account for inflation.

Conversely, 88.1% of millennials carried debt — like student loans, credit card debt or mortgages — in 2022. That compares with 86.9% of Gen Xers and 85.8% of baby boomers around that age.

What did those assets and debts look like? The median value of assets for millennials in 2022 was $219,200, compared with $246,991 for Gen Xers in 2007 and $124,963 for baby boomers in 1989 (adjusted to 2022 dollars).

Adjusting for inflation, millennials had just under $31,000 more median debt in 2022 than boomers at that age in 1989, but they had almost $29,000 less median debt than Gen Xers in 2007.

Midpoint millennials’ median cumulative income is $446,570

As another win for millennials, midpoint millennials (those born in the middle of the generation) have a higher median cumulative income (sum of median income in a series) than older generations. Those born in 1989 earned a median of $446,570 between 2014 and 2023, when they were ages 25 to 34.

Comparatively, midpoint Gen Xers earned a median of $417,700 and midpoint baby boomers earned $362,330 at those ages when adjusted in 2023 dollars.

10-year median cumulative income by generation (at generational midpoint)

Source: LendingTree analysis of U.S. Census Bureau data. Note: All figures are adjusted to 2023 dollars to account for inflation.

That means the 10-year median cumulative income of midpoint millennials was 23.2% higher than that of midpoint boomers and 6.9% higher than that of midpoint Gen Xers.

Rent, homeownership costs significantly higher for millennials

Rent prices are a common pain point for millennials, and data backs up these complaints. The median rent in 2024 for midpoint millennials — age 35 — is $1,481. Comparatively, midpoint Gen Xers paid a median rent of $1,251 in 2008 and midpoint baby boomers paid a median rent of $1,174 in 1990. That’s a difference of $230 and $307, respectively — meaning millennials pay $2,760 more a year on average than Gen Xers did and $3,684 more than baby boomers did.

Of course, Gen X renters were impacted by the Great Recession. When millions of homeowners lost their homes in late 2007 and throughout 2008, they entered the rental market and drove up rent prices.

Baby boomers faced a rent crisis themselves. In 1990, Section 8 (affordable housing) funding was running low, while buildings were getting old and needed repair. Another big challenge was the high costs for the government to renew contracts due to expensive mortgages insured by the Federal Housing Administration (FHA), which led to higher rents than usual.

Home and rent prices by generation

Source: LendingTree analysis of Federal Reserve, U.S. Department of Housing and Urban Development (HUD), Freddie Mac and U.S. Census Bureau data. Note: All figures are adjusted to 2024 dollars to account for inflation.

Millennials face their own homeownership challenges. A 20% down payment on a median home purchase in 2024 is a breathtaking $85,960 for midpoint millennials. Comparatively, midpoint Gen Xers had down payments of $69,305 in 2008 and baby boomers had down payments of $57,107 in 1990 when adjusted for inflation.

Interest rates generally benefit millennials here: In 2024, the average interest rate was 6.78%, compared with 6.52% in 2008 and 9.98% in 1990.

With that in mind, the monthly mortgage payment on a median house purchase with 20% down in 2024 is $2,237. Adjusted for inflation, Gen Xers paid $1,756 for a median-priced home and baby boomers paid $2,001.

Schulz says the rent and homeownership challenges millennials face change everything.

“When your rent is high, it makes it that much harder to put extra money away to save for a down payment on a home,” he says. “When that down payment you’re saving for is over $85,000, it’s daunting. In fact, many millennials have given up on trying to save for that large down payment, opting to put down a smaller down payment or choose not to buy a house at all. Those who choose to aim for the 20% down payment may have to put all of the expendable income into that pursuit, leaving their emergency fund, retirement savings, college funds and other financial goals woefully underfunded.”

Millennials spend more than boomers

As for overall expenses, millennials shelled out more than baby boomers — but they spent less of their income. In 2022, millennials — who were ages 25 to 34 — spent an average of $67,883 across all items that year. That’s 75.8% of their annual pretax income.

Spending and income by generation

Source: LendingTree analysis of U.S. Bureau of Labor Statistics Consumer Expenditures Survey data. Note: All figures are adjusted to 2024 dollars to account for inflation.

When Gen Xers were a similar age in 2006, they spent an average of $69,084 in 2022 dollars and baby boomers spent an average of $63,761 in 1988 — meaning Gen Xers spent 83.2% of their pretax income and baby boomers spent 91.0%.

Again, Schulz believes many millennials have taken the financial lessons of the Great Recession and the pandemic to heart.

Across all categories examined, millennials only spent a higher proportion of their income on two: personal taxes and health care. Millennials spent 9.6% of their income on personal taxes, compared with 2.7% among Gen Xers and 8.4% among baby boomers. That’s largely due to the COVID-19 pandemic: States collected more tax revenue from 2020 to 2022 than expected before the pandemic.

While millennials spent 4.0% of their income on health care, Gen Xers spent 2.9% and baby boomers spent 2.7%.

While not included in the total expenditure calculation, it’s also worth noting that average gas prices were $3.45 a gallon in 2024, compared with $4.78 in 2008 and $2.41 in 1990 (when adjusted for inflation). That means midpoint Gen Xers paid the most for gas, while midpoint baby boomers paid the least.

Staying ahead: Top financial tips for millennials

While millennials are generally doing pretty well, some may feel behind the ball — or want to get ahead of the curve. However, doing so may not be as easy as cutting out avocado toasts or morning lattes (despite what older Americans believe). Schulz offers the following advice:

• Pay down your high-interest debt. “If you have credit card debt or other types of high-interest debt, one of the best things you can do for your financial situation is knock down that debt,” he says. “It can be easier said than done, but consolidating those debts with a low-interest personal loan can be a strong choice. Not only can it save you interest and reduce the time it takes to pay off the balances, it can trim down your to-do list, leaving you with just one payment rather than several. A 0% balance transfer credit card can be an even better choice, but you’ll likely need really good credit.”
• Find an accountability partner or cheerleader. “It may sound silly, but these things matter,” he says. “Paying down debt is exhausting and emotionally draining. Having people cheering you on and helping you stay on track can make a huge difference.”

Methodology

Information related to net worth, including total assets and debt, was calculated using summary extract public data from Federal Reserve Survey of Consumer Finances (SCF) weighted responses for respondents in the age range of each generation during the relevant years:

• Millennials in 2022 (ages 26 to 41 — the latest available)
• Generation Xers in 2007 (ages 27 to 42)
• Baby boomers in 1989 (ages 25 to 43)

The SCF is conducted in three-year intervals. The data provided was adjusted to 2022 dollars by the Federal Reserve.

Cumulative income is the sum of median income for people in the relevant age group (25 to 34) from the U.S. Census Bureau Current Population Survey Annual Social and Economic Supplements, reported and adjusted to 2023 dollars in “Table P-10. Age — All Peoples (Both Sexes Combined) by Median and Mean Income: 1974 to 2023” (the latest available).

Spending data was derived from the U.S. Bureau of Labor Statistics (BLS) Consumer Expenditures Surveys for the year when someone born in each generation’s first, middle or last year was the same age, depending on the comparison. Data was for the relevant age range of the respondent (25 to 34) and was adjusted to 2022 dollars using the consumer price index (CPI) for each year, as reported by the Federal Reserve Bank of Minneapolis.

Price comparison data was taken or calculated using several sources and then adjusted to 2024 dollars using the CPI as of the second quarter of 2024 (the latest available), as reported by the Federal Reserve Bank of Minneapolis, except where otherwise noted.

Historical gas prices are from the U.S. Department of Energy.

Historical rents were calculated by applying the “Consumer Price Index for All Urban Consumers: Rent of Primary Residence in US City Average” from the BLS to median asking rent in the second quarter of the relevant year in the U.S. from the U.S. Census Bureau Current Population Survey/Housing Vacancy Survey, as reported in “Table 11: Median Asking Rent for the U.S. and Regions 1988 to Present.”

Average rates for a conventional 30-year mortgage are from July of each relevant year and taken from Freddie Mac.

Home prices are taken from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, Average Sales Price of Houses Sold for the United States (ASPUS), retrieved from the Federal Reserve Bank of St. Louis (FRED).