If you pay much attention to the world of retail sales, you will notice a trend: worry.
You will certainly find short-term worry about not enough people buying enough stuff—but that worry has always existed. In a society that bases its measures of success in terms of home prices, market values, and GDP, there will always be a need to prompt citizens to buy more and more.
But beyond the short-term unease, there is a long-term anxiety clouding the retail market. This long-term worry is far more significant and can be summarized in one sentence: Millennials don’t want to buy stuff.
Business publications have been covering the story for years: Fast Company, Fortune, TIME, The Atlantic, Bloomberg, The Wall Street Journal, even Goldman Sachs.
Recently, in a radio interview for a station in Montreal, I was asked if I thought the desire to downsize was age-related. In the mind of the interviewer, it seemed to make sense that the older one got, the more they recognized the emptiness of material possessions and the need to minimize.
I assured the interviewer this was not always the case. In fact, from everything I can tell, the desire to minimize and declutter stretches across each of the generations. It is growing among the Silent Generation, the Baby Boomer Generation, Generation X, and the Millennials. In my new book, The More of Less: Finding the Life You Want Under Everything You Own, I highlight each of the unique forces drawing people of every age to minimalism.
But for the sake of this post, let’s consider some of the reasons Millennials are refusing to partake in the retail game as the rules are currently constructed and why retail giants are worried about it:
Technology and Mobility: The Millennials are the first generation born after the technological revolution. The world feels smaller to them than previous generations and they are intimately connected to one other—regardless of geography. Coffee shops have become the new office, collaboration has become the new competition, and mobility has become the new stability. And, as many Millennials will tell you, it is difficult to live a minimalist lifestyle with a house full of stuff.
The Sharing Economy: Technology has ushered in a new connectedness with one another. Additionally, it has provided a platform on which access can take precedence of ownership. With the touch of a thumb, we can now borrow someone else’s home, bike, car, book, music, unused stuff, or countless other possessions. Ownership has never been less necessary.
Environmental Concerns: The Millennial generation is the most environmentally conscious of all age groups and this influences their buying habits significantly.
Living Preferences: The Wall Street Journal once reported 88% of Millennials desire to live in an urban setting and that one-third of the generation is willing to pay more because of it. Over the past several decades, retailers have banked on the growth of suburbia—bigger and bigger homes, further away from town-centers, fostering isolation, individualism, and personal ownership. As younger generations migrate toward smaller dwellings in walkable communities with shared amenities, consumer consumption will continue to slow.
Experiences > Possessions: As I have argued in the past, minimalism is not the end of spending. Even when minimalist principles are adopted on a large scale, the transfer of money will still take place—money will just be spent on different things than physical possessions (you can read more here: A New Minimalist Economy). The Millennial generation is proving this to be true, spending less on possessions, but more on wellness, food, drink, and experiences.
Debt/Unemployment: Certainly, significant economic trends have brought with it new shopping habits. The Millennial Generation has graduated college and entered the workforce in the middle of the Great Recession. In fact, most economic studies would indicate this generation is entering one of the worst working environments in modern history burdened with more student loans than ever.
Corporate Mistrust: Economic forces (housing bubble, student debt, shrinking of the middle class) and generational preferences (the environment, social justice) have resulted in a generation distrusting of large corporations and “the 1%” who run them. According to one study, 75% said that it’s important that a company gives back to society instead of just making a profit. While it would be interesting to know how previous generations would have answered the same question, one thing is for certain: the Millennial Generation is acting on this belief and choosing smaller, local retailers for their purchasing needs because of it.
There is one more factor that I think is quite significant. There is growing evidence that the Millennial Generation is “delaying adulthood.” At least, they are delaying adulthood as defined by economists (getting married, buying homes and cars, having children). Researchers point out that marriage is important to Millennials, they just want to do it later—the same with parenthood.
It remains to be seen whether the economic conditions of their upbringing have shaped Millennials to be minimal by nature or whether future economic growth and rites of passage will cause them to slip into the same excess of ownership that previous generations have fallen into.
But I am hopeful for the Millennial Generation. At the very least, they have examples to learn from. For example, both their parents and their grandparents continue to live beyond their means in crippling debt.
Millennials appear to be a generation hard-wired for minimalism.
I hope the trend continues.
Dan says
Perhaps it’s because these young people have no money, live at home with their parents and can’t get a job? They probably have a college Communications or History degree which gives them no prospects or hope for gainful employment. Not to mention the student debt.
They are screwed and know it. Minimalism wins by default. Their only hope is a Bernie Sanders predidency.
Judy says
Not sure—don’t have all the answers…but just observing what takes place here in Chicago…it’s a choice for this younger generation…not just a default. Millennials here are very serious about Donald Trump. Chicago loves him. Also, often college has been skipped and after high school people land jobs in retail and work their way up to management quite quickly and earn a decent living without all the college debt. We have people working side by side getting the same pay— one does well and one has college debt. Sad, but true ;) —And you can’t GIVE this generation stuff—they don’t want the clutter.
Travis says
Some of us Millennials with STEM degrees, no debt, and higher net worths than most people double/triple our age are enjoying the minimalist lifestyle. All I have to do is observe the typical Boomer’s day-to-day life and I can see exactly what I DON’T want to be like in 30 years.
I have no desire to keep up with the Joneses when I know full well they are eyeball-deep in debt, work 40+ hours a week at jobs they hate, are overweight and over-stressed, etc.
Judy says
Very smart.
Merf56 says
Good for you! I have a feeling you will not regret your choices. Best of luck!
Kyle says
Wonderful post, Joshua! Cary and I often discuss this toptic. It is a perfect storm of sorts. One last observation we have made is that the Millenials’ openness towards minimalism also stems from a reaction to their parents way of being in the world. It’s likely that most Millenials grew up in a cluttered home, contributing to this desire for less. :) Thanks for another great post! -Kyle of New Minimalism
Piper says
This article basically sums up my life. I am 22 and I have no plans to buy a house, a car, expensive furniture or anything else for that matter. I live in Vancouver, and the opportunity cost of purchasing a house here is at least $1 million. And that is just monetary opportunity cost… not even including the time spent taking care of the house.
I pretty much have all the material possessions I could ever want. if anything, I have too much. Why own when I can rent or share? More freedom, better for the environment, costs less money, and causes less stress.
Mobility is definitely the new stability. Economists need to come up with a new definition for adulthood.
Annie says
You mentioned that millenials are “delaying adulthood” because they aren’t buying houses, getting married, or having children. Unless you get married by a justice of the peace, all of these things are very expensive. The younger coworkers I have are very conscientious about budgets and debt– maybe they aren’t “delaying adulthood” so much as they’re avoiding large expenses until their financial outlook improves.
Jill D says
I think Annie is right. Millenials may not be delaying marriage, parenthood and home ownership out of choice but necessity; with the overhang of student loan debt and the rocky employment outlook, they don’t believe they can afford any of those things.
Craig Goodwin says
The way you refer to ‘the millenials’ suggests you arent one yourself, and so i suggest you try not to speak for us instead try to listen. Now i cant speak for all of us but dont offer suggestions of why we are ‘delaying adulthood’ when you arent a milenial yourself. We live in a world, where oppurtunity is abundant. the thought of travelling the world, moving countries or even starting a business are no longer pipe dreams they are very real oppurtunities for us, made possible through technology and connectivity. why would we want to restrict ourselves from doing these things by home ownership, and parenthood. For some yes, it may be a neccessity. But for the majority its this idea of being restricted that promotes the idea of delaying adulthood.
Merf56 says
Craig Goodwin: What a rude comment for no reason whatsoever. if you are going to be insulting to others, may I suggest proofreading your comment for spelling at the least?
There can be multiple reasons for people choosing certain options and their timing. How narrow minded and childlike of you to suggest only your choices and opinions are valid.
Mark S says
>> [millenials] spending less on possessions, but more on wellness, food, drink, and experiences.
The “wellness” link from Goldman Sachs says the millenials disapprove of “taking one or two drinks nearly everyday” slightly more than before.
And the “drink” link from usatoday says “millenials drink nearly half of all wine in the US”.
How are we supposed to interpret this, considering the fact that alcohol isn’t healthy at all?
http://www.bbc.com/news/uk-11660210
Anila says
Its a very interesting study & discovery of the latest generation preference, tendency & direction. All comments given are very much relavant to the scenario & together with it have shape the world that we all live together in.
Before reading the article & all the good comments given…I was quite lost to understand my children behavior & decision making they’ve made, but now its all make sense & thank you all for sharing the info.
John P. Weiss says
My 17 year old son has zero interest in getting his driver’s license, zero interest in an expansive wardrobe (jeans and t-shirts do fine), and zero interest in impressing others with possessions. He is content with his small nerd herd, video games, books and family life. Wish I had myself so squared away at 17!
John Narayan says
I hope the young ones can pull this off. Many have seen how we can’t trust big corporations and government, the use of tax havens, the off-shoring of jobs, technology taking some jobs, job security a thing of the past.
One other point about is the running costs of the minimalist and/or tiny house lifestyle, insurance, set-up costs, utility etc.
Trish Mercer says
My in-laws are hoarders, likely from being raised by parents who endured the Depression. Don’t throw ANYTHING out, no matter how damaged, rotting, or outdated.
My kids, on the other hand, hoard only books. I have one teenage son who could keep all of his possessions in one printer paper box.
My husband and I were teens in the 1980s, and remember well the materialism of those days. We’re trying to dejunk and declutter, so that when we die our kids won’t have to get a dumpster like we did for my parents to empty their house.
Karen @ Pieces of Contentment says
Thank you Joshua, you have thoughtfully put the pieces together to present an interesting picture. I dare say some of the elements are more relevant to the US but I can certainly see many similar trends here in Australia.