Americans from Generation Z are earning more than previous generations did at the same age, according to a report from the BCG Center for Macroeconomics cited by Fortune.
The report found that at age 28, members of Gen Z earn 25% more than millennials and 50% more than baby boomers. Despite those higher incomes, however, Gen Z respondents report feeling worse about their financial situation than previous generations.
The report identifies student debt and housing costs as major challenges for young adults. Economists Philipp Carlsson-Szlezak, Paul Swartz and Henry Rubin also point to difficulties faced by Gen Z and millennials in building careers, increasing income and accumulating wealth.
Housing is one of the biggest obstacles. According to the analysis, buying a median-priced home currently requires nearly six years of median income, compared with about three and a half years in 1975. The report also notes that 90% of young people live in cities and suburbs where housing supply is not growing quickly enough.
The researchers argue that, despite these pressures, there has been broader generational progress in income. Since 2020, wage growth among the lowest-paid 25% has outpaced that of higher-income workers in almost every year, according to the report.
