Luxury Good Sales Fueled by Gen Z, Millennials Who Live With Their Parents — Here’s What They’re Buying
In spite of a strong job market and potential student loan forgiveness, a record number of Gen Z (and older millennials) are still living with their parents.
One report from Prudential, based on U.S. census data, discovered that 58% of young adults aged 18-24 are still living with their parents. This is the highest number since 1940, at the end of the Great Depression, Bloomberg reported.
Research from Morgan Stanley indicates that younger Americans aren’t necessarily saving for a house, which might be expected, but instead are driving increased sales of luxury goods.
Morgan Stanley analysts, including Edouard Aubin, told Bloomberg the trend is “partly responsible for the surge in popularity of handbags, watches, and jewelry.”
Luxury brands like Tiffany, Cartier and Bulgari have reported higher sales this year in the U.S. market, according to Bloomberg. The U.S. exceeded China in its passion for luxury Swiss watches, per the Morgan Stanley report.
Young Americans are seeking to save money and avoid high rental costs — as well as pay for higher education — by living with their parents. And while it may be a good sign for the U.S. luxury market, it comes with drawbacks.
In a recent ad campaign titled “Who’s Your Rock?,” Prudential explored the impact on retirement plans when adult children “boomerang” back home.
“Many parents will do whatever it takes to make sure their kids land on their feet and are ready to take on the world around them, and that includes financially supporting young adults ‘boomeranging’ back home. For many families, this can dramatically change retirement plans,” said Susan Somersille Johnson, Prudential’s chief marketing officer, in a news release.
More From GOBankingRates
- 6 Ways To Tell If You're Middle Class or Upper Middle Class
- If You Find a Rare 'Doubled Die' Penny, It Could Be Worth $1.14 Million
- 3 Ways to Recession Proof Your Retirement
- Here's How To Build a 6-Month Emergency Fund
