Slower Wage Gains Stall Young Buyers
Financial experts said slowing wage growth is hitting young adults hardest. High housing costs and weaker job gains are delaying first-time buyers.
NEW YORK — As U.S. income growth stalls at one of its weakest points in nearly a decade, Gen Z and younger millennials are feeling the greatest financial strain, according to new JPMorgan Chase Institute research.
Annual income growth for 25- to 29-year-olds slowed to 5.2% in September, one of the lowest readings since 2011. Wages have cooled across all age groups since the pandemic.
George Eckerd, wealth and markets research director for JPMorganChase Institute, points out that younger workers are particularly affected as job-hopping opportunities shrink in a slower labor market.
"We're already seeing that young people are having a hard time getting a foothold on the homeownership ladder. They're delaying home purchases because they need to climb further up their career ladder to be able to afford it all, and that career ladder is getting flatter," he said.
Federal data show August unemployment for 16- to 24-year-olds neared 10.5%, almost three times higher than mid-career adults. Weaker wage gains and high housing costs have pushed an estimated 15 million more adults under 35 to live with parents compared with a decade ago, reflecting both limited income growth and home prices that have climbed dramatically in 10 years.
Many younger consumers are turning to stock investing at roughly six times the rate of prior generations. Analysts warn that without stronger wage growth and a steadier labor market, many first-time home buyers will remain sidelined, slowing household formation and housing demand heading into 2026.
Source: Fortune (10/29/25) Rogelberg, Sasha
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