A recent study indicates that Gen Z is resolutely "letting go" of the prospect of ever owning a home, opting instead to spend rather than save, reduce their work hours, and engage in speculative investments.

And younger generations are so disappointed and frustrated by the state of the housing market they are spending more of their earnings than they are saving, they’re working less, and they’re making risky investments, according to a recently published paper by Northwestern University and University of Chicago researchers. 

In other words, younger generations are “giving up.” That’s according to Northwestern’s Seung Hyeong Lee and Chicago’s Younggeun Yoo, who also cited a 2024 Harris Poll survey about the state of real estate that showed 42% of Americans and 46% of Gen Z respondents agreed with this statement: “No matter how hard I work, I will never be able to afford a home I really love.”

While families usually modify their spending to meet long-term objectives such as purchasing a residence, younger individuals are exceeding a “threshold at which they begin to give up on [buying a home] entirely.”

The notion that this cohort is “giving up” is also reflected in a study by Gen Z’s favorite economist, Kyla Scanlon, who contends that younger individuals experience a feeling of “financial nihilism,”, a situation where they doubt the American Dream due to unmoving salaries, accumulated student debt, and the overwhelming influence of corporations. 

Gen Z has “watched the American Dream rot before their eyes, as higher education becomes a luxury good, a housing crisis exacerbates the cost of living, all backdropped by political stagnation and rapid (perhaps even too rapid) technological advancement,” she noted, emphasizing that this demographic has experienced not just one or two, but three significant economic recessions. 

Younger generations are accumulating fewer savings compared to their expenditures.

Lee and Yoo's initial observation concerning Gen Z's reduced engagement with homeownership is their tendency to expend more funds than they accumulate. 

“We find that when home prices rise to the point where renters can no longer afford to buy a house within the foreseeable future by saving their wages, renters give up on home purchases and instead use their savings to increase consumption,” they wrote. 

This year, numerous other investigations have indicated Gen Z is doomspending rather than saving, with one research project revealing that almost fifty percent lack any savings for emergencies. A Bankrate poll further demonstrated that up to 27% of Gen Z carry more debt than they do savings.

“Many Gen Zers find themselves walking a financial tightrope, torn between covering immediate expenses or setting money aside for emergencies and paying for goods on credit instead,” Aleksandra Medina, cofounder of finance app Frich, previously told Coins2Day.

A portion of that might be attributable to the reality Gen Z expects to inherit money and resources from the $124 trillion Great Wealth Transfer, yet a Northwestern Mutual poll indicates that very few anticipate a substantial sum of money following a family member's passing.

Gen Z works differently

It's a common notion that Gen Z isn't as diligent as previous generations, a claim that's difficult to definitively prove. Lee and Yoo's investigation revealed that Gen Z has reduced their workplace exertion, believing it's not worthwhile if they can't achieve their long-term financial aspirations. They point to responses from psychographic inquiries concerning the significance of “always giving my best effort” in professional settings. Their findings indicate that the proportion of renters admitting to minimal work effort is almost double that of homeowners.

“This shift is consistent with a reallocation of time and effort by discouraged renters,” the researchers wrote. “As the perceived returns to labor (in terms of progressing toward homeownership) diminish, so does the value they place on maintaining high work effort.”

Scanlon has a different take on Gen Z’s work effort, though. 

She argues: “Maybe it’s not that they don’t want to do anything anymore, but rather they don’t want to do anything in the way that it’s always been done anymore.” 

Younger generations are engaging in speculative financial ventures

Researchers contend that a third method Gen Z employs to cope with their inability to purchase a dwelling involves engaging in speculative ventures, such as acquiring digital currencies. Their findings further indicate that when homeownership appears out of reach for a member of Gen Z, they tend to boost their discretionary expenditures.

“Renters with a plausible path to homeownership may exhibit lower risk tolerance, as significant losses could derail their progress toward that goal,” they wrote. “In contrast, those who have already given up on homeownership may perceive they have less to lose, and therefore engage more willingly in risky financial behavior.”

Additional 2025 studies suggest Gen Z is far more likely to own crypto than have a retirement account, demonstrating their increased readiness for more speculative investments. Financial professionals are concerned by this trend, they informed Coins2Day’s Emma Burleigh.

“It’s never a bad thing for people in any generation to take interest in their personal finances,” Mark Smrecek, financial well-being market leader at Willis Towers Watson (WTW), told Coins2Day’s Burleigh. “I think as long as they’re looking at risk and reward based on what their goals are, it’s generally fine. But I do get concerned when I see over-indexing toward risky assets.”