Dutch in their 20s earn more, but are less likely to own a home than 10 years ago

Today’s twenty-somethings leave their parental home later, continue studying longer, and are more likely to have a job than the twenty-somethings of ten years ago. They also have a higher income but are less likely to own a home, Statistics Netherlands (CBS) reported on Thursday.

The twenty-somethings of today live longer with their parents. In 2022, half of 23-year-olds had moved out of their parents' house, compared to 58 percent in 2011. This is partly because homeownership is more out of reach. In 2022, 43 percent of 29-year-olds lived in an owner-occupied home that was not their parental home, compared to 54 percent a decade earlier.

The less accessible homeownership is due to the housing shortage, not income. Because today’s people in their twenties earn more than their counterparts from a decade ago. In 2022, their purchasing power was 30,000 euros, compared to 25,000 euros in 2011. “Purchasing power increased mainly among people in their late 20s, while that of 20- to 23-year-olds remained approximately the same.”

The higher income is partly due to today’s twenty-somethings being better educated and more of them having work. In 2013, 45 percent of 23-year-olds were still studying, compared to 53 percent in 2023. Last year, 56 percent of 29-year-olds had a higher professional or university degree compared to 43 percent a decade earlier. In 2023, 84 percent of people in their 20s had paid work, compared to 80 percent in 2013.

Most twenty-somethings living away from home have little wealth, but it is higher than a decade ago. The average 29-year-old living away from home had 40,000 euros in assets in 2022, compared to 0 euros in 2011. “This wealth growth is partly due to rising home values.”

Today’s people in their twenties also have higher student debts than a decade ago. In 2022, the average student debt was 13,000 euros, compared to 11,000 euros in 2011. “Student debt increased particularly after the introduction of the loan system in 2015.” The loan system was scrapped again in the 2023/24 academic year.