Young adults are spending 3 times more on housing than previous generations, according to research by think-tank the Resolution Foundation.
Young adults or ‘millennials’, classed as those born between 1981 and 2000, spend almost a quarter (23%) of their income on housing by the age of 30.
At the same stage of their lives, the pre-war generation (those born between 1926 and 1945) spent just 7% of their income on their home.
This more than doubled for ‘baby boomers’ (those born between 1946 and 1965), who spent 17% of their income on housing at the same age.
Baby boomers have been the biggest beneficiaries of the 3 generations, gaining from improved security, better quality of property and lower house prices.
In contrast, home ownership rates among those born in the early 1980s slumped to around half of the rate of those born in 30 years earlier.
Lindsay Judge, senior policy analyst at the Resolution Foundation, said:
“Britain’s housing catastrophe has been 50 years in the making but, while its effects are widespread, it is millennials who are truly at the sharp end.
“The danger is that young people have to settle for lower quality, longer commutes and less security in order to afford a place to live, despite spending a record share of their income of housing.”