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Newsweek
19-05-2025
- Business
- Newsweek
Gen Z More Worried Than Millennials About Losing Their Home in a Recession
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Members of Generation Z are more anxious than Millennials about the possibility of losing their homes if the United States enters a recession, according to new polling data. A survey by LendingTree found that 27 percent of Gen Z respondents expressed concern that a recession would result in the loss of their housing. In comparison, only 23.4 percent of Millennials said the same. Why It Matters The heightened anxiety among Gen Z speaks to how younger Americans, many of whom are just beginning their financial independence, are grappling with high rent, stagnant wages, and rising costs of living. The housing affordability crisis has been a pressing issue in recent years, and these findings suggest that Gen Z may be disproportionately vulnerable to economic downturns. The disparity in concern may also reflect differences in life stages. Millennials, many of whom are in their 30s and early 40s, may already own homes or have a more stable financial footing than Gen Z, which includes people in their teens and early-to-mid 20s. A for sale sign is posted in front of a home for sale on February 20, 2023 in San Francisco, California. A for sale sign is posted in front of a home for sale on February 20, 2023 in San Francisco, To Know According to the data, Gen Z respondents not only worry more about housing stability in a recession but also report higher levels of economic stress overall. Their concern about housing loss was one of the highest among a range of recession-related anxieties surveyed across generations. While Gen Z and Millennials had roughly the same likelihood of saying a recession would happen in the next six months, more Gen Z-ers were also concerned about their partners losing their jobs (23.2 percent versus 19.9 percent). Other indicators in the data also suggest that Gen Z tends to express greater skepticism about their long-term financial prospects compared to Millennials and older cohorts. More Gen Z respondents were also getting side gigs to prepare for a possible recession than millennials. While 31 percent of the younger cohort said they were adding on an additional job or side hustle, just 28 percent of Millennials said the same. That was compared to 20 and 12 percent of Gen X and Baby Boomers, respectively. This aligns with broader trends seen in national financial surveys that show younger generations carrying higher student loan debts and struggling to enter the housing market. Across all age groups, roughly the same percentage felt the Trump administration's actions would make a recession more likely, but this was highest amongst Baby Boomers at 66 percent. What People Are Saying Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "When it comes to housing costs, many in Gen Z are just at the beginning of their careers and subsequently their income journey. A higher percentage of their earnings goes to housing costs, and any job loss would present a situation where they could potentially no longer make payments." Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "Gen Z-ers are more worried because they haven't been through the same financial fire drills. Millennials have been hit with the Great Financial Crisis in '08-09, the LTCM collapse in the late 90s, the dot-com bust, and a decade of flat returns from 2000 to 2009. They've seen markets wipe out portfolios and recover. That kind of experience builds a thicker skin, which is probably why they're less worried about a recession taking their homes." Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek: "28 percent to 24 percent is a relatively small difference, but perhaps it is because Gen Z has not yet gone through a meaningful recession in their working years. Afterall, the COVID downturn would have occurred when most of Gen Z was still in high school or college." What's Next As concerns about a potential recession persist, the housing market will likely remain a key area of focus for policymakers. Programs aimed at increasing affordable housing access, improving rent protections, and addressing youth unemployment may become more urgent. "Whereas Millennials are more established in their careers and have more savings, a recession could be devastating to the finances of Gen Z," Beene said. "Any job loss would not just put their current housing situation in jeopardy, but also impair their ability to use housing as a long-term wealth builder."
Time of India
03-05-2025
- Business
- Time of India
It's not love, it's rent! American couples are staying together because of the economy
Who would've guessed that the biggest factor keeping some couples together in 2025 wouldn't be love, trust, or therapy, but inflation? A new national survey from Self Financial found that nearly one in four Americans — 24% of over 1,000 respondents — say they're stuck in relationships they can't afford to leave. Between soaring housing prices, inflation, and the everyday cost of living, breaking up just isn't financially feasible for a growing number of people. 'While no one likes the idea of having to stay with a partner for financial reasons, for some this may be the only way to financially keep their head above water,' said Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, in an interview with Newsweek. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like How to earn a second salary with $200 [CFD] TradeLG Undo He explained that couples are relying more on each other to cover essential expenses like rent, groceries, and utility bills, turning what used to be personal partnerships into financial alliances. The financial strain is particularly severe in major cities like New York. According to the data analyzed earlier this year by Frich, a finance app for Gen Z, couples in Manhattan can save over $50,000 annually by living together, rather than splitting up and paying solo rent. That extra financial burden, commonly called the 'singles tax,' has surged 40% in the past three years, per Frich's findings. And for Gen Z, the cost of uncoupling is even steeper. Frich's survey revealed that the average breakup costs $3,862, factoring in spending on new housing, shopping sprees, emotional 'retail therapy,' and rebound vacations. One in five Gen Z respondents admitted to spending up to $2,000 on post-breakup trips alone. A single girl's night out? That'll cost you roughly $92, according to Frich. Nearly 40% of Gen Z respondents also said they'd move in with a partner before they were emotionally ready, simply to save money on rent. And 18% said they've stayed in relationships they weren't happy in for financial reasons. Money is not just keeping couples together — it's also tearing them apart. The Self Financial survey showed that 86% of respondents had argued with a partner about money, and 41% said finances contributed to their breakup. 'While staying together might seem practical in the short term, the longer the delay, the more complicated things can get financially,' Beene warned. 'The economic outlook of both individuals gets more intertwined,' Alex quoted. Masterclass for Students. Upskill Young Ones Today!– Join Now
New York Post
02-05-2025
- Business
- New York Post
‘Too broke to break up': More Americans than ever are staying in relationships — because they can't afford to be single
They've got 99 problems — and rent is one. Nearly one in four Americans say they're stuck in a relationship they can't afford to leave, according to a new national survey from Self Financial. Turns out, love isn't what's keeping some couples together — it's the shared Wi-Fi bill. The poll of more than 1,000 people found that 24% of respondents admitted they'd like to break up with their current partner — if only it wouldn't break the bank. Rising rent, sky-high grocery bills and inflation have made coupling up more of a financial strategy than a romantic one. 'While no one likes the idea of having to stay with a partner for financial reasons, for some this may be the only way to financially keep their head above water,' Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek. 'Whether it's sharing the rent, utility bills, groceries or any other expenses, couples are increasingly having to lean on each other financially to manage the cost of living,' he added. 4 The new poll of over 1,000 people found that 24% would call it quits with their partner — if doing so didn't blow up their bank account. It's a trend that's especially brutal in high-cost cities like New York, where data analyzed by the finance app Frich earlier this year indicated that Manhattan couples can save over $50,000 per year by shacking up — instead of splitting up. That so-called 'singles tax' has soared 40% in the last three years. For Gen Z, breaking up is especially expensive. 4 The dreaded 'singles tax' has spiked 40% in just three years — and for Gen Z, splitting up can come with a seriously steep price tag. Ievgen Chabanov According to the recent Frich survey, the average cost of a breakup for a Zoomer is $3,862, thanks to post-split spending on retail therapy, rebound trips, and, of course, suddenly footing solo rent. A 'single girl's night out' costs the average person about $92, while one in five Gen Z-ers admit to dropping nearly $2,000 on a post-breakup vacation to heal their broken hearts — and bank accounts. It's no wonder, then, that 18% of Gen Z told Frich they stayed in relationships they weren't happy in, and nearly 40% said they'd move in with a partner before they were ready just to save on housing costs. 4 A solo girl's night sets the average wallet back $92 — and 1 in 5 Gen Z heartbreak survivors confess to blowing nearly $2K on a getaway to cry (and cope) in style. Gorodenkoff Productions OU Not surprisingly, the aforementioned Self Financial survey found 86% of respondents had argued with their partner over money — and in many cases, it led to a breakup. Roughly 41% said finances were a factor in their split. And delaying the inevitable might only make things worse. 4 The Self Financial survey found that 86% of couples have clashed over cash — and for about 4 in 10, money drama was the dealbreaker. Konstantin Postumitenko 'While that may seem like a smart move at the moment, the longer the separation can be kicked down the road, it can actually produce bigger, more complicated financial issues,' Beene told the outlet. 'The economic outlook of both individuals gets more intertwined.' Bottom line? Love may not cost a thing — but a breakup sure does.
