Economic Hardship for Gen Z: A Data-Driven Analysis

Hardship for Gen Z

Despite a 158% increase in household income over the past thirty years, the costs of college, rent, and homeownership have significantly outpaced this growth.

With varying opinions on this topic, we decided to examine the data to better understand the situation.

Housing Expenses

The median sales price of houses sold has risen from $127,000 in 1993 to $423,200 in 2023—a 233% increase.

While mortgage rates have remained relatively stable, the size of new homes has grown from 2,085 square feet in 1993 to 2,428 square feet in 2023. It's worth noting that this figure represents the size of newly built homes, which has been declining since 2016, rather than the square footage of all homes.

The rental component of the Consumer Price Index has risen 170%, making both renting and homeownership more expensive compared to thirty years ago.

College Expenses

The annual cost of attending a four-year public university has increased from $2,349 in 1993 to $9,750 in 2023—a staggering 315% rise.

Additionally, many employers have raised their educational expectations over the past few decades, compelling more young adults to pursue college degrees to secure employment.

Childcare Expenses

Although exact figures are unavailable, the cost of child care in the U.S. has surged 263% between 1990 and 2024, according to KPMG.

This increase far exceeds the rise in median household income and brings us to our conclusion.

Conclusion

The rising costs of housing, education, and childcare have created significant financial challenges for young Americans. These hardships have likely contributed to declining fertility rates, although they cannot be solely blamed for this trend.