Millennial millionaires are temporarily shelving major purchases as interest rates and inflation rise, according to CNBC’s Millionaire Survey.
Nearly half of millennial millionaires say higher borrowing costs are causing them to delay buying a car, and 44 percent say higher interest rates have caused them to delay purchasing a home, according to the survey.
More than a third said inflation has caused them to delay a trip or vacation. The CNBC Millionaire Survey, which surveys those with investible assets of $1 million or more, suggests that inflation and rising borrowing costs are working their way up the wealth ladder.
While inflation hits the middle-class and lower-income groups hardest, rising interest rates are starting to squeeze more affluent, younger consumers, especially for big-ticket items.
Millennials are three times more likely to be cutting back on big purchases compared with their baby boomer counterparts, according to the survey.
“The millennial millionaires are clearly dealing with something they’ve never experienced,” said George Walper, president of Spectrem Group, which conducts the survey with CNBC. “As a result, they are changing their behaviors and spending plans.”
Spectrem Group and the survey consider respondents born in 1982 or later, those currently aged 40 and younger, to be millennials.
Respondents born between 1948 and 1965, aged 57 to 75, were considered baby boomers.
Inflation and rising rates have created two separate but related spending constraints for affluent consumers.