Inflation has steadily risen over the years, affecting the cost of housing. (Freepik - bearfotos)
In 2025, young adolescents are struggling to move out, afford living, and survive in our economy as they deal with inflation on goods and services, rent, and utilities. According to a study conducted in 2024 by Bank of America’s Better Money Habits, the organization found that “over half of Gen Z, ages 12-27” reported that they could not afford a life they are comfortable with, and as a result, over 30 percent of the young adults live with their parents.
Realistically, these young adults would be able to live independently for a short amount of time if they saved their income, but they would struggle with monthly payments.
This would be difficult to maintain, as adolescents make up from $800 to $1200 a month, and would have to spend at least half of that, leaving an extremely tight budget for other necessities.
Along with car payments, insurance, and paying for utilities such as the gas or water bill, they would be living paycheck to paycheck and have an extremely tight budget. CEO of the National Housing and Rehabilitation Center Peter Bell discusses how he is “glad he does not have to buy housing today,” hinting that it is stressful for Gen Z to maintain a lifestyle in this economy.
The issues around inflation and housing prices increasing not only hinder economic growth, but are overall holding Gen Z back as they are “delaying life milestones like buying a home, saving for retirement, buying a car,” and starting a family.
An article from News.Com.Au listed that the effects of the lack of milestones reached for this generation not only include psychological effects such as anxiety, a sense of hopelessness against external influences, and a perceived lack of control, but also increases dependency on parents and a lack of motivation to change one’s lifestyle for the better.
Since most of Gen Z are struggling, seeing your peers in the same situation can make you feel comfortable with the stagnation they’ve succumbed to further inhibiting them from reaching the milestones life has to offer.
A Pew Research Report that took place in 2021 compared the living conditions of Gen Z and Millennials to Gen X and found that “The proportion of young adults who live in a parent’s home more than doubled between 1971 and 2021, from 8 percent to 17 percent ” even though American’s wages have stagnated since the ’70s, while worker productivity has increased over three times, increasing in productivity, time in office, and the standards required to maintain a job in the workplace.
A Northwestern Mutual Survey stated that 51% of the respondents feel like these issues are their biggest financial struggles and “that their income was falling behind their cost of living.”
At this rate, Americans will continue to struggle to keep up with the middle-class lifestyle, and there will be a larger rift between higher, middle, and lower socioeconomic status.