Gen Z can’t afford the American Dream—so they’ve traded homeownership for paying off debt. ‘Their debt feels heavier because it hits earlier’

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':"";if(a){var r=n.promos.showYahooLogo?"":"yns-no-logo";a=a.replace("{notifOnboardBtnLabel}",n.promos.notifOnboardBtnLabel).replace("{notifOnboardMsg}",n.promos.notifOnboardMsg).replace("{subscriptionTopic}",n.promos.subscriptionTopic).replace("{noLogoClass}",r).replace("{promoLogo}",n.promos.promoLogo)}var s=t.newCount>n.panel.maxCount?t.newCount:"",c=n.panel.notificationCenterPath,l=c?"":R,u=n.panel.headerMsg?"":" "+R,d=c?H:"",p=void 0;t.count?p=t.markup:p='{emptyPanelMsg}'.replace("{emptyPanelMsg}",n.panel.emptyPanelMsg);return e=e.replace("{notifMarkup}",p).replace("{promoMarkup}",a).replace("{hideClass}",l).replace("{notifCenterLink}",c).replace("{paddingClass}",d).replace("{headerMsg}",n.panel.headerMsg).replace("{hideHeaderClass}",u).replace(/{notificationCenterNavMsg}/g,n.panel.notificationCenterNavMsg).replace(/{newCount}/g,s)}},{key:"render",value:function(e,t){var n=this;if(n._panelNode){var o=void 0,i=n._panelNode,a=void 0,r=void 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Just 3% of homeowners in the U.S. are Gen Zers, according to the National Association of Realtors.Buying a house has long been the American dream. It’s a sign of financial stability and is often considered one of the ultimate investments one can make.But finding that white picket fence is out of reach for most Gen Zers, who are now saddled with paying off personal debt—and it’s making that generation fall behind in homeownership, according to Realtor.com.Young people just want to pay off their debt, according to a report by payments-data provider PYMNTS Intelligence. On average, Gen Zers carry more than $94,000 in personal debt, a Newsweek poll shows, which far surpasses millennials with almost $60,000 in debt and Gen X with about $53,000 in debt. Part of the struggle comes in with how much Gen Zers are paying for rent each month, leaving little to save for a down payment.About one-third of Gen Zers say they’re financially underwater due to inflation, high interest rates, and stagnant wages, Natalia Brown, chief compliance and consumer affairs officer with National Debt Relief, told Fortune.“Many [Gen Zers] are entering adulthood with a heavy financial burden—student loans, credit card debt, and rising costs of living,” Brown said. “Their debt feels heavier because it hits earlier—right as they’re launching their careers.”“Add in credit cards, medical bills, and buy-now, pay-later services, and the result is a dangerous snowball effect,” she added.According to the National Association of Realtors (NAR), Gen Zers make up just 3% of all homebuyers. That may not be that surprising considering mortgage rates continue to be comparatively high, nearing 7%.Meanwhile, U.S. home prices have far outpaced wages, according to the Joint Center for Housing Studies of Harvard University. The median home price in the U.S. is more than $403,000, NAR data shows, while the Social Security Administration reports the national average wage index is about $66,600.Assuming today’s mortgage rate, a 20% down payment, and the national average salary, it would be essentially impossible to purchase a median-priced home without spending more than one-third of your monthly income on housing.Nikki Beauchamp, an associate broker with Sotheby’s International Realty in New York City, said high interest rates are a major preventative factor for Gen Zers hoping to buy real estate.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,850.00 -38.25 (-0.56%)Dow Futures48,690.00 -255.00 (-0.52%)Nasdaq Futures24,853.75 -171.50 (-0.69%)Russell 2000 Futures2,640.60 -17.30 (-0.65%)VIX21.44 +1.58 (+7.96%)Gold5,374.20 +62.60 (+1.18%)Trending tickersMDB MongoDB, Inc. 325.01 -3.46 (-1.05%)BRK-B Berkshire Hathaway Inc. 480.17 -24.78 (-4.91%)F Ford Motor Company 13.39 -0.70 (-4.97%)ASTS AST SpaceMobile, Inc. 86.92 +7.73 (+9.76%)CRDO Credo Technology Group Holding Ltd 114.22 +1.95 (+1.74%)PortfolioSign in to access your portfolioSign inTop gainersEMAT Evolution Metals & Technologies Corp. 10.16 +2.19 (+27.48%)OCUL Ocular Therapeutix, Inc. 10.98 +2.04 (+22.82%)AXTI AXT, Inc. 46.32 +8.42 (+22.22%)AAOI Applied Optoelectronics, Inc. 102.51 +18.28 (+21.70%)LASR nLIGHT, Inc. 67.69 +11.50 (+20.47%)Top losersTPB Turning Point Brands, Inc. 108.51 -28.48 (-20.79%)AES The AES Corporation 14.21 -3.07 (-17.77%)AVAV AeroVironment, Inc. 208.32 -43.93 (-17.42%)ELF e.l.f. 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