According to the think tank Resolution Foundation, young people in Britain today spend three times more on housing than their grandparents did.
In a report published today, they revealed just how poor the housing experience is for young people compared to their parents and grandparents.
The report found that thirty year olds are half as likely to own their home as baby boomers were at the same age with the average young family having to save for 19 years to save enough for a typical deposit, compared to just three years a generation ago.
Young people are also four times as likely to rent privately than they were two generations ago with four out of ten thirty year olds living in private rented accommodation, compared to just one in ten 50 years ago.
Rapidly rising rents and property prices have led to the average share of income that families spend on housing trebling over the last 50 years, acting as a drag on living standards. Millennials spend 23 per cent of their income on housing, compared to the 17 per cent baby boomers spent at the same age. Throughout the 1960s and 1970s, mortgaged owners spent around 5 per cent of their income on housing costs and renters around 10 per cent. This has leaped to 12 per cent and 36 per cent respectively.
There are some winners however. Today’s millennials who purchased a home early in their lives benefit from lower interest costs than the previous two generations at the same age, but the proportion of income being spent on capital repayments has risen relentlessly. Additionally, housing stock quality has improved, but the young are making compromises on space and commuting, spending 64 hours longer over the year getting into work than their parents did at the same age.