Jane Doe is a 22 year old recent college graduate who entered the workforce earlier this year. She works two jobs and a total of almost 60 hours a week in order to afford her own place and pay her bills on her own. Although she is able to live independently, it comes at a sacrifice that a lot of young adults her age are not making themselves.
The traditional life milestones that other generations partook in—buying a home, getting married, starting a family, having a stable career with good pay—seem to be evolving with the new generations alongside a changing society. In a recent article, Forbes claimed that “Millennials and Gen-Z are the first generation worse off than their parents.” Whether or not these generations are worse off, they definitely represent a generational wealth and cultural gap.
Homeownership
The current generation of young adults (Millennials and Generation Z) are not buying homes at the same rate which their parents and grandparents before them were getting their first homes. According to a recent statistic, 50% of young adults in the United States ages 18-29 years are living at home with their parents. Even more, this trend exists beyond the United States, as other developed countries are seeing the same pattern. In the United Kingdom, for instance, 30% of young adults between the ages of 25-29 years are also living in their parents’ homes. Why are the young adults of today not buying houses like previous generations? Although there are a multitude of reasons that influence this new real estate trend, the main culprits seem to be financial and cultural shifts.
Economic barriers including a decline in affordable housing, difficulty obtaining a mortgage, and other living costs that impede on one’s ability to save up, all have made it harder than ever to become a homeowner. These other living costs that hinder Millennials’ and Gen Z’s saving capabilities encompass other financial burdens, such as high rental costs and increased student loan debts. Even if these younger generations wanted to buy homes, the current economic circumstances are way different than they were back in the day, and decrease the likelihood of property ownership.
On the other hand, the lifestyle choices of young adults in the modern day also play a part in the decline in homeownership. For one, younger generations have shown a preference for living in urban environments where living expenses are high and the housing market supply is low. Additionally, social factors that are associated with buying a home—such as marriage and having children—are shifting and happening at later points than they have in the past.
Marriage
Alongside homeownership, marriage rates are taking a nosedive. The marriage statistics of the twentieth century demonstrated a considerably higher number of individuals getting married at a younger age, as 59% of adults (18-29 years old) in the 1960s were married. Today, that number has dropped to 20%. Over the past half a century, something has been driving this extreme decline in marriage, which is particularly evident in the new generation of young adults. Changing societal attitudes towards marriage seem to be the underlying force of this delayed marriage movement.
One source suggests that the high divorce rate (~50%) has turned away individuals from marriage, as young people are fearful of making a big commitment that might end in shambles. As an alternative, they’re turning towards cohabitation, which is now more common than marriage. On top of that, an increase of women in education and the workforce—alongside accessibility to family planning options (contraceptives)—has made marriage less compelling for women. Thus, it is evident that there has been a cultural shift in regards to the need for marriage. However, it is important to note that it is not clear yet whether this large percentage of young adults are not getting married or if they are just delaying it.
Having Kids
Having children is yet another societal milestone event that is becoming less frequent. One survey found that only about 55% of Millennials and Gen Z plan to have children, meaning that almost half of the young adults of today are not sure if they want to start a family. Even more, 1 in 4 of these individuals claim they are certain that they will never have kids. Reportedly, the main reasons for this diminishing interest in parenthood is due to the cost of having a kid and a prioritization of certain lifestyle choices.
New research shows that raising a child is more expensive than ever, as the average cost nowadays is just under $240,000—and this doesn’t include funds for college. Thus, it’s no surprise that these younger generations are concerned about being able to cover the costs. Not only that, but they have demonstrated a value for personal financial freedom that can be compromised by choosing to have kids. This preference for personal funds is attached to the lifestyle reason for not becoming a parent.
According to a 2024 report by the Pew Research Center, one of the top reasons for why younger generations didn’t want to have kids is because they wanted to prioritize certain lifestyle factors, such as their careers and interests Another study reiterated similar findings, such that the most common reason for 18-34 year old individuals not wanting kids is to have more time to focus on themselves. Millennials and Gen Z have quite clearly expressed their value for personal time and focusing on themselves first, which ties into their dwindling interest for parenthood.
Job Insecurity and Wage Stagnation
More than half of Millennials and Gen Zers are living paycheck to paycheck to just make ends meet. This lifestyle of financially scraping by has created unprecedented employment anxiety, with 37% of Gen Z and 35% of Millenials expressing their concerns about job insecurity. Current economic circumstances are to blame, and young adults are looking for potential solutions.
The young people entering the workforce in the modern day are faced with “both a slowing economy and a loosened labor market.” In the aftermath of the COVID-19 pandemic, the US labor market is still dealing with the economic strains imposed and is slowly recovering. Not to mention, due to certain companies hiring a surplus of employees during the pandemic, downsizing is unavoidable to address this.
Young adults have responded to this issue of financial security through quitting their jobs that have poor wages and less stability, and redirecting themselves towards other work opportunities. In fact, pay was found to be the number one reason over the past few years for why people are leaving their jobs. Additionally, side jobs have become increasingly common, with 46% of Gen Zers and 37% of Millennials having a second part-time or full-time job on top of their main job. Despite the job-related and financial struggles, these generations are finding ways to provide for themselves through different means.
The New Adulthood—Good or Bad?
As this New Adulthood presents new definitions and parameters for young adulthood, there is a question of whether these new trends are good or bad. Does the changing notion of adulthood foster independence or does it extend dependence for young adults? Rather than comparing the pros and cons of young adults today with the young adults in the past, it may be more appropriate to understand the evolution of young adulthood as an adjustment to the changing times and circumstances over the years.