The Decline of Ownership: How Economic Precarity is Reshaping the American Dream and Creating a Generation of Flexible Nomads
"What down payment?!" That's the question posed by a recent Canvas8 report on shifting consumer values. The report authored by Nicolas Lopez, a New York-based behavioural analyst at Canvas8, reveals that shifting consumer values are inducing a monumental change in how Millennials and Gen Z perceive the concept of ownership.?For these generations facing economic instability, the traditional markers of success - owning a home, car, or other major assets - no longer hold the same allure. Instead, flexibility, experiences, and instant gratification are becoming the new hallmarks of achievement.
This redefinition of "the good life" is particularly evident among Millennials and Gen Z, who have come of age during repeated financial crises. The prospect of homeownership once considered the epitome of the American Dream, feels increasingly out of reach for many in these generations. With 67% of Gen Y renters lacking any savings for a down payment, browsing real estate websites like Zillow has become a voyeuristic hobby - used to daydream, not strategize.
Faced with this harsh reality, younger generations are prioritizing flexibility over putting down roots. The number of digital nomads has risen a staggering 131% from 2019 to 2022 as more and more people embrace temporary and mobile lifestyles. Aleksandrina Atanasova, Assistant Professor of Marketing at Bayes Business School, explains that "the value of ownership seems to be waning...because of the rise of a digital economy as well as the sharing economy."
The Case Against Ownership: The Financial Burden and the Rise of Alternatives
So why are younger generations turning away from ownership, which has long been seen as the bedrock of financial security? One major reason is that owning major assets like property and vehicles requires long-term stability in jobs and incomes - something that is increasingly rare in today's economy. Younger workers change employers more frequently and feel uneasy relying on a single income stream. This phenomenon of “liquid modernity,” a term coined by sociologist Zygmunt Bauman, characterizes the contemporary economy defined by flexibility and precarity.
Additionally, the proliferation of the sharing and subscription economies offers convenient, affordable alternatives to ownership. Services like Uber, Airbnb, and Netflix allow people to access everything from transportation to media content to luxury vehicles without the burdens of outright purchasing them. When you can get the benefits of something without the financial and maintenance responsibilities of ownership, the perceived value of ownership declines.
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Redefining Stability: The New Markers of Success
In this new landscape, younger generations are finding alternative ways to cultivate a sense of stability. The Canvas8 report reveals some telling consumer shifts:
While these trends signal changing consumer values, they also raise some concerns. Constant job-hopping can exacerbate loneliness and erode professional development. And with so few young people focused on long-term financial plans, questions about their future retirement loom large.
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Ultimately, these shifts shed light on the economic realities facing young people today. With so much instability beyond their control, they're adapting as best they can - rewriting the social contract in the process. What remains to be seen is if these alternative lifestyles can provide the security and community they seek over the long run.
Delayed Dreams or Healthy Values? The Dark Side of Flexibility
On the surface, alternative lifestyles like digital nomadism certainly have appeal and offer a sense of freedom. But the trends outlined here suggest that young people aren't necessarily freely choosing these options as much as being forced into them by a system stacked against their economic security.
Rather than a voyage of self-discovery, "digital nomadism" for many is code for a rootless, lonely existence without community ties. And with little financial cushion, the allure of "treat culture" rings hollow - mere escapism from lives of uncertainty.
In the end, flexibility is poor compensation for forfeited dreams. We must acknowledge how the decline in ownership stems from a lack of economic power rather than a preference for most young people. Until the system enables their financial stability, the wandering souls of this "liquid modernity" find only fleeting comforts.
The time has come to rebuild the rungs on the ladder of opportunity. Only then can we distinguish between freely chosen lifestyles versus those reluctantly adopted out of necessity. The future - not just of young people, but our whole society - depends on it.
In conclusion, the decline of ownership among younger generations is a complex issue with far-reaching implications. While some may see it as a positive shift towards more sustainable and flexible lifestyles, it is essential to recognize the economic precarity that underlies these changes. By addressing the systemic issues that contribute to this instability, we can create a future where young people have the freedom to choose the lives they truly want rather than being limited by financial constraints.
Canva8 report: https://www.canvas8.com/library/reports/2023/11/10/what-down-payment-the-science-of-consumer-liquidity
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