A growing number of millennials are abandoning long-held financial goals, with homeownership rates among 35- to 44-year-olds falling to 52%—the lowest since 1980—while 44% still carry student loan debt averaging $38,500. Many cite systemic barriers and dwindling wage growth as the root causes.
- Homeownership rate for millennials aged 35–44 fell to 52% in 2024, the lowest since 1980.
- 44% of millennials still carry student loan debt with an average balance of $38,500.
- Median household income growth for millennials since 2015 has been 2.1% annually.
- Home prices rose 87% between 2012 and 2024, far outpacing wage gains.
- Mortgage applications from first-time millennial buyers declined 33% since 2020.
- 9.4% credit card delinquency rate among millennials—the highest in ten years.
Millennials are increasingly disengaging from traditional markers of financial stability, with a 2025 Federal Reserve survey revealing that 68% of respondents aged 25 to 44 believe they will never afford a home. This sentiment is grounded in stark data: the homeownership rate for this age cohort dropped to 52% in 2024, down from 64% in 2005. At the same time, 44% of millennials still hold federal or private student loans, with an average outstanding balance of $38,500, according to the U.S. Department of Education's annual report. The crisis stems from a confluence of factors, including stagnant wage growth—averaging just 2.1% annually since 2015—outpacing inflation by only 0.3 percentage points. Meanwhile, median home prices have risen 87% since 2012, while renters face a 54% increase in average monthly rent in urban hubs. As a result, the typical millennial spends 58% of their monthly income on housing and debt, leaving little room for savings or investments. Financial institutions report a decline in mortgage applications from millennials, with a 33% drop in first-time homebuyer submissions since 2020. Simultaneously, credit card delinquency among this demographic has climbed to 9.4%, the highest in a decade, indicating deepening financial strain. Experts note that employer-sponsored retirement plans are also underutilized, with only 41% of millennials contributing to 401(k)s, well below the national average. The implications extend beyond individual households. Real estate markets in major cities like San Francisco, New York, and Seattle have seen decreased transaction volumes, while lenders are tightening underwriting criteria. Policymakers are now under increasing pressure to address the structural issues, including student loan forgiveness proposals and zoning reforms to boost housing supply.