Rising housing costs and elevated mortgage rates are causing many members of Generation Z to reconsider traditional paths to wealth accumulation, particularly homeownership. A June survey by the Pew Research Center found that 89 percent of adults under 40 believe it is more difficult for young people today to buy a home than it was for previous generations. The survey also indicated that younger adults are less likely than their elders to view purchasing a house as a “very good” investment.
Instead, Gen Z is increasingly turning to other financial strategies, such as saving for retirement, trading through investment apps, and contributing to high-yield savings accounts. Retirement savings, in particular, have become a significant financial focus for this generation. An analysis by Fidelity earlier this year revealed that Gen Z’s retirement contributions are growing at a rate of 65 percent year-over-year, more than twice the growth rate seen among millennials.
Experts attribute this shift partly to the changing employment landscape. Unlike earlier generations that often relied on employer pensions and longer career tenures, today’s young adults feel the need to manage their own financial futures more independently. “People have to fend for themselves a little bit more,” said a financial analyst, noting the importance of maintaining multiple savings accounts to secure long-term stability.
Stanford scholar Roberta Katz, coauthor of “Gen Z, Explained: The Art of Living in a Digital Age,” characterized Gen Z as a generation shaped by uncertainty and adaptability. “For Boomers, there was a sense that you have your home, that you build your wealth, that you could build an estate,” Katz said. “For Gen Z, there is a high value placed on flexibility, tied to the belief that the world they are entering is one of rapid and ongoing change.”
This sentiment is echoed by young adults navigating today’s economic landscape. Jeff Sharp, 28, a part-time bartender and flight school student living in Bend, Oregon, where the median home price is approximately $700,000—nearly 75 percent higher than two decades ago—described the challenges he and his peers face in terms of purchasing power. Sharp began investing in his early 20s through the trading app Robinhood but later shifted to a more traditional approach, moving his investments to Vanguard and establishing automatic contributions to a Roth IRA and a 529 college savings plan. He also uses micro-investing tools like Acorns to diversify his portfolio.
Alongside increasing access to digital financial tools, interest in personal finance education is robust among Gen Z. A recent Gallup study found that 81 percent of adults in the generation actively seek guidance on managing money, with 75 percent relying on online resources.
Adam Benton, 23, who serves as head of operations at a defense technology startup, exemplifies this trend by regularly investing through the Charles Schwab app and tracking his net worth with budget management applications. While he continues to save aggressively, Benton views homeownership as a long-term, distant goal. “It’s so far away, it’s like, what are the odds of ever getting there?” he said, contrasting his outlook with that of his parents, for whom real estate was often considered the primary vehicle for building wealth.
As housing affordability becomes increasingly elusive for young adults, Generation Z appears to be forging new approaches to financial security, emphasizing flexibility, diversified investment strategies, and early retirement planning over traditional models centered on property ownership.