The American Dream Got More Expensive and Gen Z Is Paying for It
Gen Z isn’t avoiding adulthood; it just costs more and takes longer to reach.
The Big Story
For Gen Z, adulthood costs more than it did for their parents.
In 1975, nearly half of young adults hit major milestones by their early 30s. Today, it’s closer to one in four.
Housing plays a big role; buying a home can take over 40% of a typical income.
The Two Spins
From the Left
Younger workers hold less wealth as basics like housing, healthcare, and education take up more income.
Lowering these costs could make it easier to save.
From the Right
Limited housing supply and higher interest rates are pushing up the cost of buying.
Building more homes and easing restrictions could help bring costs down.
What This Means for Us
Young adults are renting longer, delaying homeownership, and pushing back major life decisions.
When more of a paycheck goes to rent, there’s less left for savings or emergencies, making it harder to move forward financially.
How They Make Money
Makes money by giving out home loans, charging upfront fees, and selling those loans while still handling borrowers’ monthly payments.
Some loans can be approved in minutes using automated systems, speeding up how quickly buyers can act.
Takeaway
The mortgage system runs on monthly payments, and when those rise, fewer people can afford to buy.
The Number That Stuck With Me
40
The median age of a first-time homebuyer is now the highest on record.