As the youngest of the millennials turn 30 this year, new research reveals that homeownership is no longer this generation’s ultimate financial goal.
Killik & Co surveyed 2,000 people aged 29-45, with a particular focus on those aged 29 and 30 as the generation’s youngest members.
One in five (20%) of all millennials admit that homeownership is unrealistic or unattainable, and over 2.3 million - 15% - expect to rent long-term.
The findings suggest that views are beginning to shift more fundamentally too: over one in ten (11%) of all millennials already see property ownership as the previous generation’s marker of success rather than their own, with 10% of 29-30-year-olds agreeing. One in ten (10%) of this youngest group even associate homeownership with debt and financial risk.
However, it is not clear cut. As the three-decade milestone approaches, homeownership remains a serious consideration for some. More than half (51%) of all millennials believe homeownership still represents long-term stability and security, while over a third (35%) of 29-30-year-olds see it as a marker of personal success. One in ten (10%) of this youngest group also feel pressurised by family and society to own a home, suggesting the cultural expectations of ownership remain strong.
Despite this societal influence, the research shows many are focusing their efforts elsewhere. For 36% of all millennials, the priority is being debt free, while others are focused on achieving financial independence (35%) and maintaining a high quality of life (31%). Tellingly, those aged 29-30 are prioritising financial independence (39%) over being debt-free (32%).
Career progression and growing income are key financial goals for 22% of all millennials, rising to almost a quarter (24%) of those aged 29-30. Meanwhile, 17% of all millennials now point to regular investing as a marker of success, a figure that rises to 22% among the 29-30 cohort.
Will Stevens, partner at Killik & Co, said: “Owning your own property has historically been seen as the ultimate financial rite of passage and a stable investment, but rising costs have left many feeling this is simply no longer their path. The ambition hasn’t gone away, it’s been redirected. This generation is pursuing stability on their own terms: clearing debt, building financial freedom and progressing in their careers. They are also re-thinking the traditional markers of adult life altogether.
“The fundamentals of good financial planning haven’t changed, even if the focus has. Whatever your definition of success looks like at 30 – or any age – the most important step is having an honest conversation about your goals early and getting the right advice to build a long-term plan around them.”
