"For the first time in years, Gen Z was winning. Rents had finally stopped devouring their paychecks, wages were rising faster than their housing costs, and a generation that had long trailed older Americans in spending growth was starting to actually open its wallet - on restaurants, new clothes, electronics, even travel."
"Both Gen Z and Millennials may be even more prone to cutting back on 'nice-to-have' spending amid higher gasoline prices, BofA Institute economists Joe Wadford and David Michael Tinsley wrote in the report."
"The engine behind the surge? Rent relief. In Bank of America's aggregated card and deposit data, median rent payment growth for Gen Z and Millennials slowed sharply in the 12 months through February 2026."
Gen Z experienced a significant increase in spending as wages outpaced rent growth for the first time in years. This shift allowed them to spend on various categories like dining and travel. However, a sudden spike in gas prices poses a risk to this recovery. Bank of America data indicates that Gen Z's spending growth surpassed that of Baby Boomers in mid-2025, with Millennials following in late 2025. Economists warn that higher gasoline prices may lead both generations to reduce discretionary spending.
Read at Fortune
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