The older generation kept saving all their earnings for a house, which they bought after 30-40 years income. This generation has given up trying to buy real estate. Anyway, what they can buy and what they wish to buy is a wide mismatch
How is every 24 year old GenZ suddenly walking around with an iPhone Pro Max, ₹15,000 sneakers or luxurious foreign travel? Why do they decide to park their money or borrowed money in such purchases? I am sure they do not possess any hidden wealth at that age bracket.
In economics, the Lipstick Effect happens when a financial crisis hits and instead of saving, people start buying small, premium luxury items, because the big things are completely out of reach. So, instead of saving money and denying themselves any recreation, and even denying themselves anything in the future, because their savings will not go anywhere, they decide to spend on little luxuries.
The older generation kept saving all their earnings for a house, which they bought after 30-40 years income. This generation has given up trying to buy real estate. Anyway, what they can buy and what they wish to buy is a wide mismatch.
But Gen Z realized that the game is rigged. Since, 2015, prices of real estate have risen 300-3000%. They will never be able to afford anything they like to buy in real estate.
The earlier generation could buy a massive independent house in five years after saving 20% of their salary every month. Today, if a 24-year-old saves 20% of their salary, they barely have enough for the down payment on a ₹3 Crore matchbox flat that comes with a 25 year EMI trap.
The joy of owning real estate in today’s skewed market is mathematically impossible.
They are not buying an iPhone because they are wealthy. They are buying it because they can’t afford a house, so they might as well have a nice phone while they rent forever. GenZ has boycotted buying real estate? Just as the youth of Bengal gave up on jobs from 1970s to 2026, similarly the youth of India has given up on owning real estate.
