Off The Record

The Real Reason Why Young People Don’t Buy Cars And Apartments Anymore

Published on January 6, 2019

First, let’s get acquainted with the idea of a millennial generation. They are the people who are now aged between 30 to 35-years-old. These days, this generation rarely invests in buying their own housing and even more rarely buy cars.

Trends have changed. It isn’t like older times when success was measured by the kind of house you had or the number or kinds of cars you had. Young adults do not want to buy any of it these days. In the USA, people below the age of 35 are called “the generation of renters.”

Why have the trends changed?

There are many speculations in this regard. A couple of sociologists think that it’s because this young generation suffers from financial crises. They are afraid of ‘serious’ loans. It might be the reason but it surely isn’t the most important one.

The trends are changing because the millennial generation isn’t the same as their parents or grandparents. They share different values. Their concept of success and achievement has been redefined. Here’s what they think success is:

– Buying property isn’t how successful people role – they rent!

– If you wish to be successful, invest in experiences instead – travel, do extreme sports, build startups!

Success for this generation is far from prosperity and stability. They need flexible schedules along with financial and geographical independence.

People are losing interest in material things

Their ideology is pretty different. They see no point in having a car when they can take a cab – which would pretty much be the same as having a driver drive your car. They argue there’s no point in having their own house in their hometown because nobody’s ever sure how long you will live there. Even if you take on a mortgage for, say, 40 years, it is pretty much equivalent to living in a rented place your whole life!

Oh, and according to Forbes, young people today change their jobs once every three years on average. So, renting just makes it convenient to shift home!

The concept of ownership is becoming obsolete

Here’s how James Hamblin, the Atlantic’s columnist elaborates the idea: ‘Over the past decade, psychologists carried out a great amount of research proving that, in terms of happiness and a sense of well-being, spending money on new experiences is much more profitable than buying new things. It brings more joy.’

Experience helps us expand our social circle

Humans are social animals. They need to socialize and it is very crucial to their happiness. Talking to others and making new friends is a very healthy practice. Having a lot of friends makes you happier.

Now, if you invested in buying cars or properties, would it really be an interesting topic for others? No! People would rather hear about your trip to the African Savannahs! Experiences take an upper hand in a conversation with others. Bad experiences can make a good story. Material things cannot.

Remember Hamblin’s article? Here’s what it had to say in accordance with this notion: ‘Turns out people don’t like hearing about other people’s possessions very much, but they do like hearing about that time you saw Vampire Weekend.’

You should also read:Less Is More – 5 Ways Minimalist Living Will Make You a Happier Person

Buying things can be worrisome

Investment doesn’t end with buying things. When you buy something, there’s always more you will have to put in for its maintenance, especially if it’s a property or a car. You are always afraid of what will happen to the expensive things you buy – what if the super expensive TV you brought breaks during the transfer? What if you get robbed? What if your car meets a terrible accident?

There are always chances of things going wrong and, when we invest in lavish stuff, we can’t help thinking what could possibly go wrong. It worries us while experiences cannot be harmed.

Every purchase depreciates with time

Our parents didn’t have the luxury of travelling as much as we do. There wasn’t as much possibility of starting your own business. There were fewer options overall. Hence, they invested their wealth in real estate and cars. It’s not like this with us. Plus, all these purchases depreciate. They lose value with time, especially in the time of crises when real estate depreciates so quickly!

Memories and experiences are worth it all! They won’t lose value. Nobody can take them from you. They help you grow as a person.