From Fortune:

Young people are increasingly choosing to spend money on luxury items and experiences rather than saving for a home. A report shows that 90% of 18-34-year-olds would consider buying luxury goods, despite warnings about financial security. Many feel uninterested in long-term plans and prefer to live in the moment, enjoying vacations and designer products instead.

A growing number of young adults are prioritizing luxury items over saving for a home. Many fear that they may not even want marriage, children, or property ownership. They prioritize spending money on travel and indulgences and feel that saving for a house may not be attainable. These luxury purchases are seen as investments in memories and experiences rather than material goods.

Some young people are choosing luxury spending as a way to create the appearance of affluence on social media. They feel pressured to maintain this image and are willing to make luxury purchases to keep up with their peers. This desire for luxury is also leading to poor investment choices and a preference for experiences over owning property.

The housing market has left many Gen Zers feeling hopeless about ever owning a home. They don’t see saving as a viable option and believe they may never be able to afford a house. Many feel that the future is uncertain due to geopolitical tensions and climate change, which leads them to focus on enjoying the present rather than saving for tomorrow.



Read more: Housing market rebellion fueling Gen Z spending on ‘caviar bumps’, luxury holidays and designer bags