The individual spending and savings habits of millennials may be having a negative effect on the U.S. economy.
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The millennial generation, typically defined as those born between 1981 and 1996, are burdened with increasing student loan debt and are delaying major milestones, such as homeownership and marriage.
“Millennials overwhelmingly say that they value sort of ease of access and frugality over the prestige of ownership,” said Kristin Tate, “How Do I Tax Thee?” author, during an interview with FOX Business’ Charles Payne.
According to a GOBankingRates survey, 43 percent of adults ages 25 to 34 said they are prioritizing homeownership, despite having to deal with a number of financial woes.
“We’re talking about minimalism and the fact that we are not spending as much on homes and we’re not buying as much because we live in smaller homes,” FOX Business’ Kristina Partsinevelos said.
November homebuilder sentiment fell to its lowest level in more than two years as demand continues to weaken. The National Association of Home Builders’ monthly confidence index fell eight points to 60 this month.
However, Tate said millennials are forming their own households as they come of age which can be a precursor for homeownership.
“It’s a kind of change in lifestyle values that’s dictating the way this generation spends money,” she said.