The Changing Landscape of Housing Costs
Brian Gorman began as a bagger at 14, earning nearly twice the federal minimum wage. Living with his parents, the Massachusetts teen taught guitar on the side, building substantial savings. In the 1990s, this allowed him to save enough for a substantial down payment on a home.
Unlike millennials and Gen Z, who face surging home prices and stagnant wages, Gorman’s story reflects a time when housing costs were more manageable. Inflation has since increased everyday costs, while housing prices leap beyond salary growth. This creates a challenging market for young people today.
Newsweek interviewed Gen Xers about early housing experiences, revealing the contrast between then and now.
Gen X Perspectives on Past Housing Markets
In 1996, Alexia Georghiou’s first job in Maryville, Tennessee paid $26,000, equivalent to $56,000 today. She rented centrally for $400 ($862 today) monthly, bought a car, traveled to Cyprus, and saved effectively. Her experience highlights Gen X’s opportunities in affordable housing markets, including purchasing a Florida condo on a single salary.
Similarly, Rodney J Moore, from Asheville, North Carolina, started as a TV researcher and writer in 1996, earning $35,000 annually. He paid $650 for rent, allowing him to save and plan family life. Adjusted for inflation, his rent would now be $1,400. This figure aligns with current rates, yet Moore’s salary translates to $75,000 today, markedly higher than the average $41,184 for ages 20-24, according to Forbes.
Barriers to Affordable Housing for Modern Generations
Economist Scott Beaulier highlights structural differences for Gen X and Gen Z. While wages have grown, housing costs, especially in metro areas, have climbed faster. The U.S. Treasury notes that rents and property prices have outpaced incomes for two decades, limiting independence for young adults.
“The issue is not Gen Z’s work ethic, but the worsening salary-to-housing ratio,” says Beaulier.
Today, many young workers allocate 35–50% of take-home pay to housing, exceeding the traditional 30% guideline, as realtor Jim Chamberlin confirms. Beaulier stresses the difficulty of saving for a home under these conditions.
Reflections from Gen X on Missed Opportunities
Gorman, now ready for marriage and home ownership, perceives a drastically different market. “Saving is harder as everything is pricier, particularly housing,” he observes.
Amore Philip, another Gen Xer, declined purchasing opportunities in a Brooklyn brownstone, now a decision she regrets. She recalls a time devoid of major responsibilities, once inaccessible prices have skyrocketed.
Today’s two-bedroom apartments in her former neighborhood are listed for hundreds of thousands or even millions, starkly contrasting past affordability.
Gen Z’s Unique Economic Position
Beaulier emphasizes that generational differences are tied to economic timing, not merit. Gen X entered adulthood pre-housing boom and before metro areas became unaffordable for newcomers.
Although faced with challenges, Gen Z displays promising financial growth. A 2026 Bank of America report shows Gen Z’s salaries are rising rapidly, aided by frequent job changes.
Despite a challenging housing situation, Beaulier concludes that in terms of net worth and well-being, Gen Z is faring well.