Gen Z can’t buy starter homes, cars, or entry-level jobs—because the economy priced them out

Young adults are spending $1,200 less each year than they would if they had moved out. That is the downstream cost of a housing market that no longer clears for first-time buyers, a job market that no longer hires them, and a consumer economy that priced out the entry-level rungs.

The housing deficit now stands at 4.03 million units. Nearly 1.82 million Gen Z and millennial households that historically would have formed simply haven’t. Starter home prices have risen 87% over the past seven years. The median age of a first-time homebuyer hit 40 in 2025—an all-time high. Even under optimistic construction forecasts, closing the supply gap would take seven years.

Cars are no longer a backdoor to independence. The average new vehicle costs $49,000, up 27% since 2020. Used cars, once the safety valve for young buyers, now average more than $25,000.

The job market is not opening. Hiring of workers aged 25 and younger dropped more than 45% compared with 2019. The average new hire age rose to 42 in 2025. Employers are prioritizing experience. AI is eliminating the junior roles that once served as on-ramps into skilled professions.

Over 70% of Gen Z and millennials say 'survival spending' is their norm and that wealth is out of reach. 64% of parents with Gen Z children are still providing financial support. For 56% of those parents, the support is straining their own finances. One million more young adults are living at home than pre-pandemic trends would have predicted. Each one spends $1,200 less annually than peers who moved out. That gap is now a $12 billion–$13 billion drag on U.S. consumption.