What is 'Yupcap'

Yupcap is a slang term that refers to a young urban professional who cannot afford property. Yupcaps are generally people in their late twenties or early thirties who find themselves unable to purchase real estate in the current market, despite having earned a college degree.  

BREAKING DOWN 'Yupcap'

Yupcaps should not be confused with Yuppies, which are defined as young urban professionals with lavish lifestyles or with extreme spending habits. Yuppies generally already own homes, whereas Yupcaps are still renting or living at home with their parents. Yupcaps are generally gainfully employed with well-paying jobs, but are still unable to qualify for a home loan due to lack of savings, limited credit histories and rising property values. 

The housing market in the United States has been in a state of growth since the housing crash of the mid-2000’s, leaving many potential homeowners unable to qualify for a home mortgage. Today’s Yupcaps sometimes find themselves continuing to live with their parents after they graduate college.

The difference between Millennials and Yupcaps

Millennials are considered by most to be anyone born between 1982-2004, and are also referred to as Generation Y. Yupcaps are the population that are at the early end of this demographic. They have completed their secondary and post-secondary educations and have entered the work force. A lot of todays Yupcaps have high-paying jobs in growing industries, but due to student loan debt, they have high debt-to-income ratios and have been unable to save up enough for a down payment.

Millennials at the younger spectrum of this age range aren’t yet considered Yupcaps because they are not ready to purchase real estate. They may face additional challenges once they enter the work force as technology changes and a lot of positions are eliminated or automated.

Additionally, due to rising sea levels and changes in weather patterns, a lot of areas in the United States are becoming too expensive to live in due to additional insurance policies that are required, like flood and hurricane insurance. In some areas, premiums are pricing existing homeowners out of the market. In the future, organic economic growth may stagnate in these areas due to a lack of new, younger residents moving in and bringing with them their larger spending capital.