People in their twenties earn more but struggle with the housing market

People in their twenties today earn more and are more likely to have a job compared to their peers ten years ago, but the housing market remains difficult to access. New figures from the CBS show that although incomes have increased, fewer young people own their own homes.

According to figures from the Central Bureau of Statistics (CBS), in 2022, only 2% of 20-year-olds and 43% of 29-year-olds lived in a home they owned outside of their parental home. This represents a decline compared to 2011, when 3% of 20-year-olds and 54% of 29-year-olds lived independently in their own homes. Rising housing prices and high student debt make the housing market difficult to access for young people, leading to twentysomethings staying at home longer.

Student Loan System

The high student debts are primarily due to the student loan system introduced in 2015. In 2022, the average student debt was €13,000, up from €11,000 in 2011. Especially 24-year-olds now have higher debts, averaging €17,000 in 2022. This student loan system was abolished for the academic year 2023-2024.

Higher Education and Increased Income

Finally, the figures show that the education level of people in their twenties has increased: 56% of 29-year-olds had a higher professional or university degree in 2023, compared to 43% ten years earlier.

Despite their high student debts, the current generation of twenty-somethings earns more than before. In 2022, the average income of an independent twenty-something was €30,000, compared to €25,000 in 2011. However, this is not pure gain: due to inflation, the cost of living has also become significantly more expensive.

Their wealth has also increased, especially among late twenty-somethings. A 29-year-old had an average wealth of €40,000 in 2022, whereas it was almost zero in 2011.

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