While incomes have not risen in line with housing costs – both rentals and property prices are at record highs, interest rates are at record lows.
Saving for a deposit and servicing a mortgage in Auckland is almost impossible for first-time buyers, so is a weekend brunch out to cheer yourself up, when you’re facing the reality that you might never own your own home really to blame for low deposits?
Even if you saved all the money spent on smashed avo brunches and take away coffees, most first-time buyers would still not be able to afford Auckland – and would struggle to afford Wellington and Christchurch without parental help.
But a report by consumer spending specialist Marketview suggests there is – spending behaviour by consumer aged 25 – 29 (typically Gen Z’s not Millennials) have increased their spending by 56%, which Marketview claims has outstripped their growth in population.
The report revealed that much of Millennial’s spending growth is due to a growing interest in eating out. Whether it be cafes, restaurants, bars or fast food, Millennials really are dining out much more than previous generations.
With their preoccupation with convenience (think UberEats), takeaways are an increasingly popular purchase for this age group - spending figures from Marketview revealed that in 2017.
Marketview also identified Millennials have a strong preference for online shopping, with spending growth for nearly all online categories outstripping their bricks and mortar equivalents.
Marketview said figures show that since 2009, these consumers have more than tripled the amount they spend online, now allocating 10% of their spending budgets to online purchases.
While many industries both on and offline are benefitting from Millennial money, figures from Marketview identified an emerging trend with potential to impact the wider retail landscape.
In the last eight years, spending by Millennials in non-metro areas increased by more than 50%, while the CBD’s of Auckland, Wellington and Christchurch combined only saw a 14% increase in spending from these consumers.
Marketview managing director Stephen Bridle said: “As young people increasingly turn to online options for their everyday shopping needs, the concept of the CBD and ‘High Street’ is becoming somewhat redundant, at least to them.
“As they no longer need to head out to the shops in the city every weekend, Millennials are breathing life back into the ‘local village’, bringing business back to their communities as they go out for coffee, drinks and dinner in their local neighbourhoods, a phenomenon we are only seeing increase as this group grows,” Bridle added.
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Millennial consumers have been labelled as ‘big spenders’, wasting their money on smashed avocado and takeaway coffee, but is there any truth to this? Could those treats really add up to a deposit?