Research by the Resolution Foundation think tank has found that young people are spending three times more on housing than their grandparents did. Those in their 70's and 80's spent just 7% of their annual income at the age of 30, compared to the millennials who spend 23% of their annual income on housing costs.
The report also says that millennials also have longer commutes and have to cope with less space, By the time they reach 40 years old they will be spending on average 64 hours a year compared to their parents.
The post war baby boomers now benefit from record levels of outright ownership, but there are now as many young families (aged 25–34) living in the private rented sector as owning a home or living in the social rented sector combined (36%). Also a young family has to save for 19 years on average to afford a typical deposit, compared with three years for the baby boomer generation. This is due to millennials having to spend a larger portion of their income on rent, meaning they are less able to save up a deposit than previous generations.
While the number of mortgage loans issued to first-time buyers over the past year is at its highest level since pre the financial crisis, the average age of a first time buyer looks set to continue to rise over the coming years.