Researchers from Northwestern University and the University of Chicago said economic frustrations, including increasingly unattainable housing, have pushed Gen Z in the US to not only spend more instead of save and work less, but also turn to risky investments, like crypto, The Independent Singapore previously reported.
The thing is, Financial Times found that the same is happening to younger professionals in the UK, with renters there who have little hope of saving up for a home deposit turning to online betting.
Researchers noted that those who see homeownership as possible for them, or already own homes, don’t indulge as much in high-risk bets.
Meanwhile, housing unaffordability concerns have also been felt by renters.
In the latest report from Harvard University’s Joint Center for Housing Studies, researchers found record-high concerns over housing unaffordability, even among renters, driven by upfront rental costs like application fees, security deposits, broker fees, and first and last month’s rent.
Financial Times highlighted the urgency of addressing the homeownership affordability crisis, noting that it is not only destabilising the wider economy but also pushing many young adults onto a slippery financial path.
The report further stressed the need for better financial literacy, as more young people are taking big monetary risks.
Unfortunately, the statistics suggest that Gen Z may end up as lifelong renters, unlike older generations. /TISG
Read also: Gen Z discussion: Young workers say older generations misunderstand their struggles
