The question of whether baby boomers had it easier than millennials financially, particularly in terms of work, housing, and lifestyle, is a contentious one, often debated at family gatherings and in economic analyses. Boomers (born 1946–1964) and millennials (born 1980–1996) faced distinct economic landscapes, each with unique challenges and advantages. Below is a detailed comparison based on key financial metrics—work, housing, debt, and income—drawing on available data to assess the claim that boomers had it easier.
Work and Income
Boomers:
- Early Work: Many boomers, like the one quoted, began working young, often at 14 or 15, in low-skill jobs like paper routes or retail. The labor market in the 1960s and 1970s allowed teenagers to enter the workforce easily, with minimal credentials required for entry-level jobs. However, unemployment rates for young boomers were not always favorable. In 1969, the unemployment rate for young boomers (ages 16–24) was 5.7%, compared to a national rate of 3.5%. By 1979, it rose to 9.2% for those in their early 20s, higher than the national 5.8%.
- Economic Context: Boomers entered adulthood during a period of strong post-World War II economic growth, but they also faced challenges like the 1970s stagflation and recessions in the early 1980s. The 1982 recession saw unemployment peak at 10.8%, impacting young boomers entering the job market.
- Income Growth: Median household incomes for boomers in their 20s and 30s grew steadily during the 1970s and 1980s, supported by a robust manufacturing sector and unionized jobs. For example, in 1995, a 30-year-old boomer like Jochem Van Der Kwast could earn $70,000 annually (equivalent to ~$140,000 in 2024 dollars) selling kitchens part-time, supporting a family and a mortgage.
Millennials:
- Early Work: Millennials faced a different labor market, with fewer opportunities for teenage employment due to automation, higher education requirements, and a shift toward service-based economies. The 2007–2009 Great Recession hit millennials hard, with unemployment for 20- to 24-year-olds reaching 7.4% in 2017, nearly 70% higher than the national rate of 4.4%.
- Economic Context: Millennials entered the workforce during or after the Great Recession, which flattened incomes for 30-somethings for nearly 15 years. The gig economy and declining unionization reduced job security and benefits compared to boomers’ era.
- Income Growth: Despite challenges, millennials born in 1989 had a median cumulative income of $446,570 from ages 25 to 34 (2014–2023), higher than inflation-adjusted figures for boomers ($362,330) and Gen X ($417,700) at similar ages. However, this income is unevenly distributed, with wealth concentrated among high earners.
Comparison: Boomers benefited from a stronger labor market with more accessible entry-level jobs and stable income growth, but they faced high unemployment during recessions. Millennials dealt with a tougher job market post-Great Recession and less job security, though their median incomes are higher when adjusted for inflation. The perception that boomers had it easier may stem from their ability to secure stable, middle-class jobs with less formal education.
Housing
Boomers:
- Mortgage Rates: The 8.8% mortgage rate cited is consistent with the 1980s, when rates peaked at 18% in 1981. In 1989, when many younger boomers were buying homes, rates averaged around 11%. Despite high rates, home prices were lower relative to income. For example, a $196,000 home in 1995 (Jochem’s case) was about 2.8 times his annual income.
- Homeownership: About 45% of boomers owned homes by ages 25–34 in the 1980s, supported by lower home prices relative to income. The median home price in 1990 was $57,107 (in 2024 dollars), requiring a 20% down payment of ~$11,400. Mortgage payments took up 33.2% of median income in the 1980s, the highest of any generation.
- Affordability: Boomers faced high interest rates but benefited from rapid declines in rates after the early 1980s. By 1994, a mortgage at 8.75% on an average home cost $763/month, dropping significantly within a few years.
Millennials:
- Mortgage Rates: Millennials entered the housing market during a period of historically low rates (e.g., 0.10% RBA cash rate in 2020), but rates rose to 7–8% by 2023. A median-priced home in 2024 ($429,800) requires a 20% down payment of $85,960, far higher than boomers’ $11,400 (inflation-adjusted). Monthly payments at 7.4% on a $343,840 loan exceed $2,300, consuming 33.4% of median income.
- Homeownership: Only 37% of millennials aged 25–34 owned homes by 2019, compared to 45% of boomers at the same age. By 2024, 54.9% of millennials owned homes, but this lags behind boomers’ 61.5% at age 35. High home prices (up 121% since 1960 vs. 29% income growth) and rising rates have made homeownership elusive.
- Affordability: Millennials face lower mortgage burdens (22.5% of income on average) due to low rates post-Great Recession, but skyrocketing home prices offset this advantage. The median home price in 2024 is 6–7 times the median millennial income ($71,566 in 2020), compared to 2–3 times for boomers.
Comparison: Boomers faced high mortgage rates but lower home prices relative to income, making homeownership more attainable. Millennials benefit from lower rates historically but face unprecedented home price-to-income ratios, requiring larger down payments and often family assistance (23.8% of millennial/Gen Z buyers used family money). Boomers’ housing market was more affordable overall.
Debt
Boomers:
- Student Debt: Higher education was free in Australia from 1974 to 1989, so most boomers had no student loans. Those who attended university post-1989 faced minimal HECS debts compared to today.
- Other Debt: In 1989, 85.8% of boomers carried debt (e.g., mortgages, credit cards), with a median asset value of $124,963 (2022 dollars). Debt was manageable due to lower education costs and stable job markets.
- Lifestyle: Boomers were frugal, using coupons and buying used cars, as the quote suggests. Their debt was primarily tied to mortgages, with fewer consumer debt options like modern credit cards or car loans.
Millennials:
- Student Debt: Millennials face significant student loan burdens, with 43% of younger millennials holding a median of $30,000 in loans, compared to 5% of older boomers with $22,000. HECS debts in Australia have grown, with indexation rates increasing repayment burdens.
- Other Debt: In 2022, 88.1% of millennials carried debt, with a median asset value of $219,200 but higher liabilities (e.g., $15,281 median auto debt in major U.S. metros). Auto loans are more common due to longer loan terms and rising car prices ($47,000 average in 2021).
- Lifestyle: Millennials are more likely to invest in cars (65% see it as worthwhile) and face higher living costs, with 56.5% saving from paychecks for home down payments and 17.6% working second jobs.
Comparison: Boomers had minimal student debt and lower consumer debt, eased by a culture of frugality. Millennials face heavier debt loads, particularly from education and cars, exacerbated by stagnant wage growth relative to living costs. Boomers had an easier time managing debt.
Wealth and Net Worth
Boomers:
- In 1989, boomers aged 25–43 had a median net worth of $58,101 (2022 dollars). About 8.7% had negative net worth, reflecting manageable debt levels.
- Boomers benefited from rising home equity, with many sitting on millions in equity by 2024 due to home price appreciation. They dominate home sales (53% of sellers) and often buy with cash, leveraging equity from previous homes.
Millennials:
- In 2022, millennials aged 26–41 had a median net worth of $84,941, 46.2% higher than boomers and 8.4% higher than Gen X at similar ages. However, wealth is uneven: the top 10% held $457,000, while the median was $48,000, 30% lower than boomers’ $63,100 at age 35.
- High debt and unaffordable housing limit wealth accumulation, with 14% of millennials having negative net worth by 35.
Comparison: Millennials have a higher median net worth, driven by high earners and asset ownership (99.3% hold assets), but wealth inequality is stark, and debt burdens are heavier. Boomers accumulated wealth more consistently through homeownership and stable careers.
Lifestyle and Economic Context
Boomers:
- Boomers lived frugally, as the quote highlights, relying on coupons, discount stores, and used cars. They benefited from a “quarter-acre lot” dream, with homes like Jochem’s $196,000 four-bedroom house in 1995 offering stability.
- They faced high inflation (1965–1982) and stock market volatility (e.g., Black Monday 1987), but economic recovery in the 1990s boosted their financial security.
- Sexist policies limited opportunities for women, with many unable to secure mortgages without a male co-signer until the late 20th century, a unique barrier.
Millennials:
- Millennials face higher living costs, with median rent in 2024 ($1,481) outpacing boomers’ $1,174 (1990, inflation-adjusted). Many are rent-burdened, spending over 30% of income on rent.
- They navigate a more diverse, flexible society but face FOMO-driven decisions, like buying homes at 7–8% rates to avoid further price hikes. Technology and education offer advantages, but these come with costs (e.g., $63,000 median down payment in 2024).
- The Great Recession and COVID-19 shaped a cautious financial mindset, with 20% saving rates compared to boomers’ 31%.
Comparison: Boomers’ frugality aligned with a more affordable lifestyle, while millennials face higher costs and societal pressures, offset by technological advancements and higher education levels. Boomers’ economic environment was more stable post-recession.
Did Boomers Have It Easier?
The data suggests boomers had advantages in housing affordability and debt levels but faced high interest rates and economic volatility. Millennials benefit from higher incomes and lower mortgage burdens historically but struggle with exorbitant home prices, student debt, and wealth inequality. The boomer’s claim of working at 14 and driving used cars reflects a frugal mindset that aligns with their era’s opportunities, but it overlooks millennials’ unique barriers, like a 6–7x home price-to-income ratio versus boomers’ 2–3x.
Conclusion: Boomers likely had it easier in achieving milestones like homeownership due to lower price-to-income ratios and minimal student debt, despite high mortgage rates. Millennials face a tougher housing market and heavier debt loads, though their higher median net worth and incomes offer some advantages. The debate isn’t black-and-white—each generation faced distinct challenges, but structural factors like housing costs tip the scales toward boomers having an easier path to financial stability.
If you’d like a chart comparing specific metrics (e.g., home prices, incomes, or debt by generation), let me know, and I can generate one with available data!