It has long been thought that success can be measured by being able to buy a home and a car. But it’s not like that anymore. Every day, more and more young people no longer have this desire to acquire this type of property.
Recent research has shown that fewer and fewer members of the “Y” generation (those under 30-35 years old) are buying a home, or a car. In reality, they do not want to make big expenses, except an iPhone, of course.
What if young people did not access property simply because they … have nothing to do with it?
New research – led by psychologist Matthew Killingsworth – has focused on the values of new generations, and their discoveries are very interesting. They highlight how the definition of “success” has changed between the generation of our parents and ours.
For them, buying a house and a car created stability, and stability was synonymous with success and happiness, but not for us.
In the United States, this generation under 35 is called the “renter generation”. What is the reason ? Some sociologists believe that these young people, perfectly aware of the current financial risks, know what the dramatic consequences of a real estate or financial crisis may be. They have no desire to engage in large credits.
But that’s not the main reason.The greatest particularity of the “Y” generation is that it cultivates values other than those of its parents. Completely different values.
These young people re-evaluated the definition of success. Gone are the days when one gauged oneself by seeing who owned his car or his house. Today, we value those who have chosen to invest their money in life experiences, travels and adventures.
These young people consciously refuse to buy real estate and even furniture, they prefer to rent everything. These young people now want a flexible schedule, to be independent economically and geographically: Traditional prosperity – as it was known before – and stability does not interest them.
Material things no longer interest people. What’s the point of having a car if you can take a taxi? If we look at things from a certain point of view, a taxi is also a personal car, with a driver, and it is not more expensive to use than his own vehicle.
Why buy a house in a beautiful place if you can find accommodation on the site “Airbnb” in any place on the planet? The rent is not very expensive, and it is not necessary to buy a residence in the country that interests you at a given moment. Ditto for housing your hometown, or where you work.
First, who can predict how long he will stay in this or that city? So what good is it to commit to a 40-year housing loan if, in the end, we are perfectly satisfied in a rented house or apartment that we can leave when we want it or when we need it? Today, most people have several successive jobs, so being an owner is more of a hindrance to possible changes and mutations. Forbes magazine has established that young contemporaries change jobs about three times a year.
The concept of property of things is no longer the one before.
Critic James Gamblin, columnist for Atlantis, explains the phenomenon as follows: “For the past ten years, psychologists have done a great deal of research that shows that, from the point of view of happiness and feeling of well-being, it is more profitable to spend money to live experiences only to buy new things. It makes people happier. “
Here is an excerpt from an article by Gamblin:
It turns out that young people are not interested in where their friends buy a home, but rather what they do on their weekends. Even a bad experience can become, in the end, a fascinating story. “
Social interaction between young people plays an important role in the possibility of being happy. So they have to talk with their peers and have a lot of friends. Of course, others will enjoy listening more to the story of a crazy and unexpected journey, or the experience of someone in an unknown country, rather than knowing how many houses could buy this person. “
And that’s not all.When we own goods, especially if they are very expensive, we worry a lot.For example, if we buy a car, we start each time a car alarm goes off. If you buy a house, you also have to buy a lot of appliances to get some comfort, and you will be constantly afraid of getting robbed. What about cars that get hit and scratch, and hyper expensive TVs that break down after a year. On the other hand, lived experiences and adventures will be there forever. As the song says, “It’s always won.”
Our parents, at least most of them, could not travel as much and as far as us, they did not have the opportunity to have fun as we do now. They did not have as many opportunities to start a new business, so they invested in properties and cars. But we do not intend to follow their steps on these points. In the end, any purchase – apart from a house or apartment – will lose its value over time; if we take a look at the decline and recession of the real estate market, everything becomes more obvious.
And here is the icing on the cake: the experiences do not lose their value, and no one can steal them.
Why do young people no longer want to buy a car or a house?
Let’s summarize in four main lines what explains this evolution:
1. The loss of money is (almost) inevitable
The older generations, like our parents and grandparents, did not have as many opportunities and temptations as we do today. In 2017, apart from stone (and again, it is not uncommon to see their prices drop during a crisis) the vast majority of the goods we buy lose their value. And some in less time than it takes to say. This is especially true for vehicles, electronics or textiles. Conclusion: In 90% of cases, buying would be like losing money.
2. The coming generation is less materialistic than the previous one
Why invest in a car if you can take an Uber, a taxi or public transport? It does not cost more and is often more convenient. Why buy a house and go on vacation when you can rent all kinds of feet to land around the world with sites like Airbnb or HomeAway? No need to ruin yourself to find happiness! And it’s the same with real estate in general.
First, it is becoming more and more common that people do not know for how long they will stay where they live. Secondly, the commitment of a credit over 30 or 40 years scares and gives the impression of being “blocked”. In addition, it is likely that you do not work in the same place all your life (the younger generations change jobs on average every 3 years, according to a Forbes study, ed). If you are a tenant, nothing prevents you from looking for a new home closer to your future job for example.
3. Experiences bring more than goods
In the past decade, psychologists around the world have demonstrated that in terms of happiness, development and personal fulfillment, spending money on new experiences is more rewarding than investing in assets. And by far.
Today more than yesterday, people need to escape or even leave their daily lives. To do so, many prefer to get back to basics by discovering new things, meeting and sharing. But above all, by creating memories. They want to feel alive. Ask yourself why road-trips are so fashionable lately … There is no coincidence.
4. Large purchases create stress
If, at times, the goods we own (especially when they are expensive) bring us joy and happiness, in the long run, the fallout can be more … complicated. For example, if you buy a car, a house or a super smartphone, you will have to monitor its condition, ensure that it does not deteriorate, maintain it, and these are reasons to add more. stress and worry in your life.
At the time of anxiety in which we evolve, it seems logical and coherent not to want to complicate the existence. On the contrary, you will never be able to take away a memory or an experience, regardless of its nature.
Sources Why do young people no longer want to buy a car or a house? : / Fast Company / source