Metro Detroit millennials from low-income families lagging Gen Xers
Add Axios as your preferred source to
see more of our stories on Google.
Millennials born to low-income families in Metro Detroit and most other U.S. cities are faring worse than the last generation, a new analysis found.
Why it matters: Intergenerational mobility — the idea that each generation can surpass the previous one — is fundamental to the American dream but is far from certain.
What they did: A new analysis from the Census Bureau and Opportunity Insights, a research group at Harvard University, seeks to measure intergenerational mobility at the county level.
- Researchers compared the average household income at age 27 for Americans born to low-income families in both 1978 and 1992 to get a localized picture of changing opportunities over time.
The big picture: In 38 of the 50 biggest U.S. metro areas, individuals born into low-income families in 1992 made less money at age 27 than those born in 1978 at that age.
- That includes Metro Detroit, where those born in 1992 made $27,166 at age 27, down 2.4% from what those born in 1978 made at the same age ($27,843, adjusted to 2023 dollars).
Yes, but: Detroit was far from the worst metro for intergenerational mobility. It is No. 18 among the 50 cities when ranked by percent change between incomes. The national average percent change was a 4.2% decrease.
- Grand Rapids, meanwhile, saw a 4.3% increase between the age groups, making it No. 5 for cities that have made the most progress.
The intrigue: Some local Millennials who have made financial gains still worry about the future. It's common among that generation, which remembers the 2007-09 recession and is now seeing costs rise for major expenses like daycare, the Wall Street Journal reports.
- Becky Wang and Christian Hutchinson, a married couple in Grosse Pointe Shores, have good jobs, a mortgage rate under 4% and nine rental properties that they started buying in 2013.
- "My wife and I are much more scared of failure in 2024 than 2014," Hutchinson told the Journal. "Once you have something to lose, you get soft oftentimes."
Go deeper: You can explore the researchers' work at the Opportunity Atlas, an interactive tool where the data can be sliced by income levels, gender, race and more.
📬 We want to hear from you! Are you a millennial or Zoomer in a worse financial situation than your parents?
- Email [email protected] to share your experiences.