Oh, the humanity!
Millennial millionaires are putting their mansion-buying on hold as they too grapple with high inflation and rising interest rates.
CNBC’s Millionaire Survey finds that 44% of millennial millionaires are postponing plans to buy a new (or second, or third) home.
It also finds that almost half of such folk have put off plans to buy a new car, and more than a third are delaying their next trip or vacation.
Things are tough all over, am I right?
The CNBC Millionaire Survey focuses on people with investable assets of $1 million more, meaning they have fat stacks to play with beyond routine household expenses.
Inflation has been a bigger problem for working families, many of which are now living paycheck to paycheck.
For rich people, especially younger ones, rising interest rates are a bigger concern. They prefer to borrow money for lavish purchases rather than sell off stock holdings.
“The millennial millionaires are clearly dealing with something they’ve never experienced,” George Walper, president of Spectrem Group, which helped conduct the survey, told CNBC.
“As a result, they are changing their behaviors and spending plans.”
While this is clearly a setback for people who pride themselves on being wealthy at a relatively young age, it has ramifications as well for the rest of us.
The housing market had been one of the bright spots of the pandemic, bolstered mostly by high-end home buyers willing to waive contingencies.
As higher interest rates slow such activity, home prices could come down. But rising rates will put a damper on sales.
It’s also unlikely potential sellers would rush out with new listings if prices are falling. The inventory shortage in the housing market, therefore, would persist.
So let’s just give our millennial millionaire friends a digital hug, and send thoughts and prayers about that postponed purchase of an Aspen ski lodge.