Generational Divide Deepens as Housing and College Costs Soar, Impacting Younger Generations

A growing economic chasm is emerging between generations, with younger individuals facing unprecedented challenges in affording fundamental life milestones such as homeownership and higher education. Social media commentary highlights this escalating concern, with one widely shared tweet stating, "> Boomers won’t just price you out of a home, they’re going to price you out of college too." This sentiment reflects a broader crisis where rising costs are disproportionately affecting Millennials and Gen Z.

The housing market has reached critical affordability levels, with U.S. home prices hitting fresh all-time highs in April 2025, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index. The income needed to purchase a single-family home has doubled since 2019, while mortgage rates remain elevated. This has led to a significant increase in the median age of first-time homebuyers, reaching 38 in 2024, up from 29 in 1981, as reported by the National Association of Realtors. Many younger adults are delaying homeownership or opting for extended stays with parents due to financial pressures.

Concurrently, the cost of higher education continues its upward trajectory, making college increasingly inaccessible for many. An Ellucian Student Voice Report 2025 indicated that 53% of U.S. high schoolers are deterred from attending college due to financial strain and potential debt. Even those who enroll often struggle with upfront costs and debt, leading to delayed or abandoned educational pursuits. This financial burden forces students to consider alternatives like part-time study, online programs, or vocational training to avoid accumulating substantial debt.

Experts note that these trends contribute to a significant generational wealth gap. Younger generations are grappling with the lingering effects of economic recessions, stagnant wages, and soaring costs, which collectively impede their financial stability and ability to save for long-term investments. The confluence of these factors suggests that economic security and traditional pathways to adulthood are becoming increasingly out of reach for a substantial portion of the younger populace.