Rising inflation and borrowing costs are working their way up the wealth ladder and causing even the wealthiest millennials to delay major purchases, CNBC reports. Nearly half of millennial millionaires are putting off car payments as a result of higher borrowing costs, while 44% are postponing their home purchasing plans, according to CNBC’s Millionaire Survey.
Though millennials are more likely than baby boomers to hold back on big purchases amid fast-rising inflation, they're also more optimistic with 55% believing that current conditions will last only a year compared with nearly two-thirds of baby boomers who say inflation could last upwards of two years.
Two-thirds of millennial millionaires surveyed said they are “less likely than a year ago to borrow money” due to higher interest rates. That compares with only 40% for baby boomers.
Forty-four percent of millennial respondents said higher rates have caused them to delay purchasing a new home, compared with only 6% of baby boomers. Nearly half of millennial millionaires said they are delaying purchase of a car because of higher rates — more than double the rate of baby boomers.