The current economy is hitting everyone hard.
However, new reports show that Gen Zers, in particular, are especially feeling the strain of high prices, rising housing costs, increasing student loan debt, and overall debt. An analysis of Bureau of Labor Statistics data by The Washington Post showed that Gen Z is paying 31% more for housing than Millenials did when they were the same age. Add to that car insurance costs that have more than doubled and health insurance that has increased 46%. Meanwhile, inflation-adjusted earnings are up a meager 26%.
Many Gen Zers are being forced to table dreams of home ownership due to steep housing costs and rising inflation, as recently reported by The Dallas Express. Another recent report found that climbing rent costs will force Gen Zers to spend $149,000 on housing by age 30.
The latest Census Bureau data shows that over half of U.S. adult men and women under 25 lived in their parents’ homes in 2022, an increase compared to prior decades. About 57% of men and 55% of women ages 18-24 lived in their parents’ homes compared with 52% of men and 35% of women in that age group in 1960.
The result is that Gen Zers are increasingly relying on family for financial support. Here’s the start of a Business Insider report on the issue:
Gen Zs are struggling financially, and nearly half of them rely on their parents for support, a new study found.
And though the TikTok-famous trend of “loud budgeting” may be helping, it’s not enough to offset the rising cost of everything from college education to monthly rent to eggs.
Bank of America released a report Wednesday outlining Gen Z’s financial health, and things aren’t looking too great for these 18- to 27-year-olds.
The report — which is based on an Ipsos survey of more than a thousand young people conducted in April and May — found that 46% of Gen Zs in that age bracket rely on their parents or family members for financial assistance.
It’s not just in college, either; the report found that 30% of non-students get help from their families.
And 32% of the Gen Zs who are getting financial assistance from either their families, the government, or their friends say they get $1,000 a month or more, with 44% saying they get $500 or less.