European youth hold small fraction of total household wealth

Student demonstrations that began in France in September have spread to more than 11 European countries. The unrest is driven by rising rents, high fuel costs, and cuts to public services. Many young participants say they no longer expect to be financially better off than their parents.

The European Central Bank's 2023 Household Finance and Consumption Survey provides concrete figures for this disparity. Households led by individuals under 35 have a median net wealth of approximately 25,000 euros. In contrast, households headed by those aged 55 to 64 possess a median net wealth of about 208,000 euros. This creates a gap of more than eight times between the two groups.

The survey covers the eurozone, the Czech Republic, and Hungary. It measures net wealth by adding property, vehicles, valuables, and savings, then subtracting debts. In the 22 countries analyzed, under-35s hold only 2.8 percent of total household wealth. The 55-to-64 age group holds the largest share at 24 percent.

Finland shows the most extreme inequality. Under-35s hold just 0.8 percent of household wealth there, the lowest share among all surveyed nations. Individuals over 55 hold more than 71 percent of the wealth in Finland. Young people also hold small shares in Ireland, Austria, Greece, and Germany, where their percentage of total wealth ranges from 1.4 to 2 percent.

Wealth distribution is more even in Central and Eastern Europe. In Lithuania, under-35s hold 13.2 percent of household wealth, compared to 15.9 percent for the 55-to-64 age group. Similar patterns appear in Croatia, Slovakia, and Estonia, where younger adults hold between 9.8 and 12.3 percent of total wealth. Malta is an exception outside these regions, with under-35s holding 11.1 percent.

Evelyn Astor of the European Social Observatory noted that housing prices have risen sharply in both rental and ownership markets. She explained that this trend reinforces feelings of inequality, as ordinary families struggle to pay rent or buy homes while wealthy individuals with significant capital can make large investments in the European housing market. Eurostat data shows that prices for everyday goods and services in the eurozone, Hungary, and the Czech Republic have risen by 67.2 percent since 2000. Hungary has seen the steepest increase, with prices more than tripling.