A Yupcap is a person who is new to the workforce, usually in their early 20’s. It is technically an acronym, standing for “Young Urban Professional who Cannot Afford Property. They are a part of the Millennial generation, and cannot afford real estate in the current market despite having earned a college degree.
Yupcaps are usually employed with well-paying jobs, but still live at home or rent because they cannot qualify for a home loan due to lack of savings, limited credit histories, and rising property values. A lot of them are also struggling with student debt, having just finished their first or second degrees. This also makes it hard for them to buy, because even though they have good jobs, their debt-to-income ratios are high and they have trouble putting enough in savings to afford a down payment.
Another challenge they are facing (which will only get worse) is that sea levels are rising and weather patterns are changing, making some areas in the US even more expensive to live in because additional insurance is required. Flood and Hurricane risks can push the premium out of the range of affordability for people who are just starting out. This trend could cause economic growth to stall in these areas, because there are no new young professionals coming in to spend more money and add their spending capital to the mix.