Gen Z Grapples with Challenges to the Traditional American Dream

Elizabeth Swan, a 27-year-old from Illinois, comes from a family of educators, including her father and aunt. Despite being certified to teach middle and high school history and social studies, she has only secured a substitute teaching job paying $32,000 annually. She is in a committed relationship with a software engineer, and both still reside with their families in the southern suburbs of Chicago.

Swan describes her version of the American dream as living without debt, free from the fear of homelessness, and having reliable health insurance. She also hopes for public education to remain viable so she can sustain employment. While she dreams of marriage and children, she feels the need to achieve financial independence first — a goal that currently seems out of reach given rental prices, with even the most modest one-bedroom apartments costing around $1,300 per month. She envisions providing her future children with opportunities like summer camp and maintaining financial stability in the face of unforeseen medical expenses.

In recent weeks, nearly 200 members of Generation Z responded to a call seeking their thoughts on their futures — including career outlooks, homeownership prospects, family planning, and retirement expectations. The responses offered a broad spectrum of perspectives across gender and geography, revealing a generation at a crossroads.

Many Gen Z respondents still hold onto the core elements of the traditional American dream—marriage, homeownership, and children—though often in a different order or through alternative means, such as purchasing property with friends rather than a spouse. However, most expressed skepticism about their ability to realize these ambitions, with few expecting to surpass their parents’ economic standing, even among those from historically disadvantaged backgrounds.

While youth anxiety about the future is not new and past generations have faced hardships, today’s young adults confront unique obstacles that foster a more pessimistic outlook. Chief among these is the soaring cost of housing, which was a recurring concern regardless of whether respondents lived in rural towns or major cities. Without affordable homeownership, the foundation of the American Dream feels unattainable. Recent data shows that although more starter homes are being built, their median price has surged to $287,000 in 2024—a 44 percent increase since 2020.

Qualifying for a mortgage on such homes now requires an annual income exceeding $100,000, roughly double what was needed just a few years ago. Unlike during the 2008 recession, when rental prices dropped and cushioned the blow for many, current housing costs remain high, pushing the median age of first-time homebuyers to 38.

At the same time, the entry-level job market appears fragile, even for college graduates. Advancements in artificial intelligence are partially responsible for this emerging crisis, undermining job stability and making higher education a riskier investment for some young people who worry about accumulating debt without guaranteed returns.

Christian Avalos, 25, from Northern California, who attended college but did not complete his degree, questions the value of continuing his education given the high costs. He wonders whether the investment will pay off in the long run.

Faced with uncertain financial futures, many young adults adopt a cautious approach, avoiding risky career paths or speculative ventures in technology and creative fields. The disruptions caused by the COVID-19 pandemic during their formative years have intensified their desire for security and normalcy.

Financial commentator Kyla Scanlon, author of "In This Economy? How Money and Markets Really Work," has observed that some Gen Z individuals embrace high-risk digital opportunities, including cryptocurrency and social media influencing, as alternatives to traditional employment. Yet, broadly, she notes that this generation confronts significant challenges: eroding institutions, demographic shifts, and a shrinking federal workforce.

According to Scanlon, most young people she speaks with have not abandoned the dream but are searching for viable paths forward. They still desire security, love, and meaningful purpose but remain wary of the institutions historically meant to provide these.

Despite these obstacles, Gen Z continues to aspire to climb the traditional socioeconomic ladder—securing employment, settling down, and owning a home. Yet their efforts resemble trying to ascend a ladder that is constantly being moved, making progress difficult and uncertain.

When asked about retirement, many respondents expressed doubts about the future of social safety nets like Social Security. Avalos bluntly remarked that he does not expect to retire, noting that his Generation X parents are still working and joking darkly about hoping global crises might intervene before then.

Climate change was frequently cited as an existential threat undermining any long-term stability. Jay Girardot, 28, an administrative assistant from Indiana, remarked on the difficulty of envisioning a future when the environment itself seems hostile. While Girardot hopes to retire around age 70, their partner is less optimistic, questioning the value of saving for a retirement that might never materialize.

In response, Girardot is considering a self-sufficient lifestyle, such as establishing a large garden and raising livestock like chickens and goats to secure food independence.

Homeownership remains a widespread aspiration, yet many young adults doubt they will ever afford it in the United States. Jakob Gilleylen, 22, who recently graduated from college in Chicago and hails from a semi-rural area in Michigan, expressed frustration with the housing market, feeling that affordable living is elusive no matter the location.

This sense of economic entrapment has led numerous young Americans to contemplate relocating abroad. Concerns about social acceptance and healthcare access, especially for marginalized groups, motivate some to consider leaving the country. Others are drawn by the prospect of more attainable living standards overseas.

Avalos noted that although violence is a concern, many of his family members in Guadalajara, Mexico, have managed to obtain degrees and own homes, living with less economic struggle than he experiences.

Contrary to stereotypes about Gen Z and relationship challenges, most respondents were either married or envisioned long-term partnerships as integral to their futures, regardless of gender or sexual orientation. Gilleylen observed that while not everyone wants children, nearly all desire marriage at some point.

This inclination toward stable relationships aligns with the generation’s generally conservative tendencies, recognizing the practical and emotional support such bonds provide during difficult times.

However, the prospect of having children remains uncertain, not due to opposition but because of financial barriers. Aimee Wang, a 19-year-old college student in Pittsburgh, remarked that raising children increasingly feels like a luxury only affordable to the well-off. Despite her immigrant parents’ success in achieving the traditional American Dream, she doubts she can replicate it and quipped that those without sufficient means might be better off having a pet.

Despite the challenges, Scanlon offers a note of cautious optimism. She suggests that Gen Z’s reevaluation of the dream signals an awareness and engagement with reality, stating, "Young people aren’t zombie-walking the path. The fear and worry they feel are part of being awake—and awakening is essential to building something new."