The traditional “American Dream” once revolved around a stable career, homeownership, and financial security. For previous generations, the formula was simple: work hard, save money, buy a house, and retire comfortably. But for Millennials and Gen Z, that version of the dream is a relic of the past. Economic instability, skyrocketing costs, and a changing workforce have dramatically shifted what’s possible—and what people even want.
1. Buying A House Is Totally Unattainable
Homeownership used to be the cornerstone of the American Dream. But today, buying a home feels like winning the lottery—rare, unlikely, and entirely out of reach. Soaring housing prices, stagnant wages, and investors buying up properties have made it nearly impossible for first-time buyers to enter the market. According to Real Estate Witch, only 21% of millennials believe their generation can afford homes in 2025, a significant drop from 52% in 2024.
Unlike their parents, who could afford homes on a modest salary, Millennials and Gen Z are watching house prices climb faster than their ability to save. The once-standard 20% down payment is now a distant fantasy for many, with student loans, rent, and inflation eating up their income. The dream of homeownership has been replaced with the reality of long-term renting, where the only thing growing is their landlord’s wealth. Many younger people have accepted that they may never own property—turning the classic American milestone into an outdated privilege only available to the wealthy.
2. There’s No “Third Space” Because We’re Consumed By Work
Past generations had a “third space”—a place outside of work and home where they could unwind, connect, and build community. Whether it was a local diner, a hobby club, or even a casual coffee shop, these spaces played a crucial role in work-life balance. According to The Atlantic, many third spaces like coffee shops are “either too expensive for the average American or apparently designed to disincentivize lingering.”
Today, younger generations struggle to maintain that balance. Work has become all-consuming, and many people don’t have the energy, time, or financial flexibility to invest in social spaces. The gig economy, remote work burnout, and 24/7 hustle culture have blurred the lines between work and personal life, leaving little room for anything else. Add in rising costs, and simple pleasures like grabbing coffee with friends or meeting up for a drink can feel like luxuries rather than routine social activities. With fewer free spaces available, the sense of community that once defined the American Dream has been replaced by exhaustion and isolation.
3. Wages Don’t Match The Immense Cost Of Living Pressures
For Boomers, a single job—even one that didn’t require a degree—could cover rent, food, and a comfortable lifestyle. But for Millennials and Gen Z, wages have failed to keep up with the rising cost of everything, from groceries to housing. According to a survey from Resume Now, 73% of workers are struggling to afford more than the basics, with only 6% able to save for the future.
Despite being the most educated generation in history, many Millennials and Gen Z workers are earning barely enough to survive. Inflation has driven up the cost of living, while wages have remained stagnant. Even those with full-time jobs often need side gigs just to make ends meet. Financial stability isn’t about budgeting better—it’s about an economic system that simply doesn’t provide enough for people to get ahead. What used to be considered a middle-class salary now barely covers the basics, making the old American Dream feel like a cruel joke. The promise of upward mobility has been replaced with the reality of just trying to stay afloat.
4. It’s No Longer Feasible To Live Off A Single Wage
There was a time when one person’s income could support an entire household. One parent could stay home with the kids while the other worked, and families could thrive on a single paycheck. According to the National Center for Children in Poverty, single-parent families consistently faced higher rates of unemployment, poverty, food insufficiency, and frequent worrying relative to two-parent families throughout the COVID-19 pandemic.
That reality is long gone. Today, most households require two incomes just to survive, and even then, financial security is far from guaranteed. The dream of one steady job providing long-term stability has been replaced by a constant scramble to stay afloat. Many Millennials and Gen Z workers rely on multiple income streams, side hustles, and gig work to make up for stagnant wages. What used to be a comfortable life on one salary now feels unattainable even with two. The stress of financial survival has left many younger generations burnt out and unable to envision a future where they aren’t constantly working just to keep up.
5. Having Children Is Becoming Unattainable And Undesirable
Raising children used to be a given—something most people assumed they would do without much financial concern. But now, having kids feels like a privilege that only the wealthy can afford. Childcare costs are astronomical, healthcare is expensive, and the pressure to provide a good life is overwhelming.
For many Millennials and Gen Zers, the idea of having kids isn’t just financially unattainable—it’s also less appealing. With climate anxiety, job insecurity, and economic instability, many people simply don’t see parenthood as the dream it once was. Instead of embracing traditional family life, younger generations are prioritizing financial security, mental health, and personal fulfillment. Many are opting for pets, travel, or creative pursuits over children, reshaping what the “ideal life” looks like. The American Dream no longer assumes a house full of kids—it now includes the freedom to live without the burdens of raising a family in a world that feels increasingly unstable.
6. Retirement Age Is Getting Further And Further Away
Previous generations could expect to retire in their 60s with a pension and a comfortable nest egg. But for Millennials and Gen Z, the idea of retiring at all feels like wishful thinking.
With wages failing to keep up with inflation and fewer companies offering pensions, many younger people assume they’ll be working well into their 70s—if they can afford to stop working at all. The days of a secure retirement, complete with travel and leisure, seem laughably out of reach. Instead, Millennials and Gen Z are focusing on trying to maintain financial stability now, knowing that saving for retirement is a luxury most can’t afford. The dream of a peaceful, well-earned retirement is being replaced with a reality where work never truly ends.
7. The American Dream Has Shifted To Survival, Not Success
For previous generations, the American Dream was about achievement—owning a home, starting a family, and building generational wealth. Today, for Millennials and Gen Z, the goal is much simpler: survive.
The shift from prosperity to survival is the clearest sign of how dramatically things have changed. Instead of chasing big dreams, many young people are focused on simply affording rent, keeping up with student loan payments, and managing daily expenses. The idea of financial freedom or early retirement feels laughable when just covering the basics is a struggle. The American Dream hasn’t disappeared—it’s just been reduced to something far less ambitious than it once was. For younger generations, success isn’t about luxury or excess; it’s about stability, and even that feels harder than ever to achieve.
The American Dream hasn’t disappeared—it has just been rewritten. Instead of homeownership, it’s about financial flexibility. Instead of retirement, it’s about finding joy in the present. And instead of stability, it’s about adaptability. The old dream may be gone, but Millennials and Gen Z are building a new one—on their own terms.
8. Owning A Car Is Simply A Necessity, Not A Milestone
For older generations, buying a car was a significant milestone, a sign of independence and financial stability. It was a rite of passage—something to aspire to as a marker of success. But today, car ownership isn’t about freedom; it’s just another unavoidable expense.
Between soaring gas prices, high insurance costs, and the rising price of new and used cars, owning a vehicle has become more of a financial burden than a milestone. For those living in cities, public transportation and rideshare services have become more appealing, even if they aren’t perfect. Meanwhile, those in suburban and rural areas are left with no choice but to own a car, regardless of whether they can comfortably afford it. Unlike previous generations, Millennials and Gen Z aren’t dreaming of flashy new cars—they’re just hoping theirs doesn’t break down, forcing them into another round of financial strain.
9. Health Insurance Costs More Than Some People’s Rent
Healthcare in America has always been expensive, but for Millennials and Gen Z, it’s a crisis. Many people spend more on health insurance than they do on housing, and even those with coverage face high deductibles, copays, and medical debt.
Previous generations could often rely on employer-provided insurance that was relatively affordable. But today, many younger workers don’t get health benefits at all, especially those in gig work or freelance positions. Even those who do have coverage find that basic healthcare is still financially crippling. A single medical emergency can wipe out savings, forcing many into debt or making them avoid the doctor altogether. The American Dream once included the expectation of accessible, quality healthcare. Now, it’s more about hoping you don’t get sick, because even a minor health issue could derail your finances entirely.
10. Boomers Call Us Lazy While We Work Multiple Jobs To Survive
Despite working longer hours, taking on side gigs, and dealing with unprecedented financial challenges, Millennials and Gen Z are often labeled as “lazy” by older generations. The stereotype that young people don’t want to work ignores the reality that many are juggling multiple jobs just to get by.
Hard work isn’t the problem—economic conditions are. Many Millennials and Gen Z workers work 40+ hours at their main job and still need side hustles just to cover rent and groceries. The idea that anyone who struggles financially must be “bad with money” is completely disconnected from the reality of today’s wages vs. cost of living. The American Dream used to be about hard work paying off. Now, it seems like no matter how hard younger generations work, the goalposts keep moving, making financial security feel impossible.
11. Dating Feels More Like An Economic Partnership Than Real Love
Love used to be the foundation of relationships, but today, dating feels increasingly transactional. With the high cost of living, many people choose partners based on financial stability rather than pure connection.
Splitting rent, sharing expenses, and navigating job instability have turned relationships into economic survival strategies rather than purely romantic connections. It’s not uncommon for couples to move in together earlier than they would have in past generations simply because affording two separate places isn’t feasible. Marriage, once a financial security net, now comes with risks—student loan debt, rising divorce rates, and the pressure to afford a wedding that won’t put them in debt. While love is still important, financial compatibility has never mattered more, shifting the way people approach commitment and long-term planning.
12. Side Hustles Aren’t Extra Income, They’re Necessary
The idea of a “side hustle” used to be about extra spending money or pursuing a passion. Now, it’s a requirement just to survive. Many Millennials and Gen Zers rely on freelance work, gig jobs, or online businesses to supplement their income.
With wages failing to keep up with inflation, a single job is rarely enough to cover all expenses. Instead of using side hustles to save for a vacation or extra luxuries, younger generations are using them to afford rent, pay off debt, and keep up with basic bills. The American Dream once promised that hard work at one job would be enough to live comfortably. Now, it demands constant hustling just to break even. Work-life balance has been replaced by work-life survival, leaving many people exhausted with little hope for a future where they can slow down.
13. We’re Trapped For Decades With College Debt Looming Over Us
Higher education was once a guaranteed path to success. Today, it’s a financial trap that leaves many young people drowning in debt for decades.
Student loan payments eat up significant portions of salaries, delaying homeownership, savings, and even basic financial security. The promise that a degree would lead to high-paying jobs hasn’t matched reality, leaving many graduates underemployed and struggling to pay back massive loans. Unlike previous generations, who could afford college without taking on crippling debt, Millennials and Gen Z are forced to choose between higher education and financial security. The weight of student loans impacts everything from career choices to mental health, making financial independence feel like an impossible dream.
14. We Know That Pensions Will Be A Distant Memory When We Retire
For Boomers, pensions provided a reliable safety net for retirement. But for Millennials and Gen Z, pensions are practically nonexistent. Instead, workers are expected to save through 401(k) plans—if they can even afford to contribute.
Many young people are unsure if Social Security will still exist by the time they retire, making financial planning even more stressful. With rising living costs and stagnant wages, saving for retirement is a luxury that many simply can’t afford. The idea of a comfortable retirement has been replaced with uncertainty, where working into old age may not be a choice, but a necessity. The security that older generations had in their later years is something Millennials and Gen Z can only dream of.
15. There Is No Such Thing As The Humble 9-5 Anymore
Work used to be structured—clock in, clock out, enjoy your evenings. Now, jobs bleed into personal time, thanks to emails, remote work, and hustle culture.
The traditional 9-5 barely exists anymore, and many people feel like they’re always “on,” with no clear separation between work and life. Even in office jobs, employees are expected to answer emails outside of work hours, meet unrealistic productivity goals, and remain available at all times. Remote work, while offering flexibility, has also blurred boundaries, making it harder to truly disconnect. The American Dream once valued stability and balance, but now, it seems like success is only possible for those willing to be constantly available. The expectation to be “grinding” at all times has made burnout a lifestyle rather than an occasional problem.
16. We Can’t Follow Our Passions AND Pay Our Rent
“Do what you love, and you’ll never work a day in your life” sounds great in theory—but in reality, most passion-driven jobs don’t pay enough to live on.
For many Millennials and Gen Zers, the choice is between financial stability and doing what they love. Unfortunately, survival often wins. Creative fields, nonprofits, and social-impact careers often come with low salaries and little job security, forcing people to abandon their dreams for jobs that actually pay the bills. The freedom to explore passions and pursue meaningful work has been replaced by a desperate need to make ends meet. The American Dream once encouraged people to chase fulfillment—now, it’s just about financial survival. Many young people are left wondering if they’ll ever be able to do what they love without sacrificing their basic needs.
