Gen Z Is Forgoing Homes for Holidays as Buying Feels Out of Reach

Younger adults are increasingly diverting money toward travel instead of saving for a house, driven in part by a growing sense that homeownership is slipping beyond their grasp. Data cited this year show the typical American now expects to buy a first home at about age 40, up from roughly 28 in the early 1990s. Among people who don’t own homes, more than one-half say purchasing a house feels out of reach, and the number of Americans identifying as digital nomads has more than doubled since 2019 — rising to roughly 18.5 million from about 7.3 million, with three-quarters of that group coming from Millennials and Gen Z.

New surveys suggest those constraints are reshaping household budgets. A recent study found that roughly two in five members of Gen Z take spontaneous leisure trips often, compared with about one in four across older cohorts. Another travel-industry report shows that for their most recent vacation about one-half of young travelers trimmed restaurant outings and around two-fifths cut back on grooming to free up cash for a trip. In short, many younger consumers are slashing everyday discretionary spending while keeping travel budgets intact.

Experts say a mix of high housing costs, tighter mortgage underwriting and stagnant wage growth help explain the shift. A housing researcher at a national nonprofit observes that the gap between what young adults earn and what markets demand for down payments and monthly mortgage bills is pushing some to look for other ways to use their earnings. Remote work has made it easier for people to earn a paycheck while moving between cities and countries, turning travel from a rare splurge into a more regular lifestyle choice for some.

The change in priorities has broader economic effects. Cities that once relied on spending at neighborhood restaurants, salons and entertainment venues may see less local discretionary income as younger residents direct funds to travel and accommodation platforms. At the same time, destinations and services that cater to mobile workers are seeing rising demand, reinforcing a new segment of the tourism market built around longer stays and flexible work arrangements.

This trend also reshapes expectations about the so‑called American Dream. Even among renters under 40 with six-figure incomes, confidence in becoming homeowners has fallen compared with five years ago, according to the same body of research. For some, travel represents a form of security or fulfillment they feel they can attain now, while others treat it as a stopgap until housing becomes more accessible.

Whether this cohort returns to the housing market in force or continues to favor mobility will matter for policy makers and businesses alike. If the pattern persists, housing markets, urban retail sectors and the travel industry may all have to adjust to a generation that values experiences and flexibility over traditional asset accumulation.