A J.P. Morgan Asset Management panel argues that millennials and Gen Z are feeling squeezed by housing, student debt, weaker entry-level labor markets, and high costs for necessities, but they still drive a disproportionate share of spending growth and are reshaping what companies sell.
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This episode of Insights Now is a panel discussion with Jack Manley, Jordan Jackson, and Katie Korngiebel about how millennials and Gen Z are influencing the economy, markets, and the advice profession. The conversation starts with why younger generations have had persistently worse consumer sentiment than older cohorts since roughly 2015–2018, which the speakers tie to housing affordability, higher rates, student loans, political/social stress, climate anxiety, and AI-related job concerns. A major theme is affordability. The speakers emphasize that housing, healthcare, and education now consume a much larger share of household spending than in prior generations, leaving less room for saving, investing, and family formation. Jordan Jackson personalizes the issue with examples of mortgage-rate resets, childcare costs, and student-loan refinancing. …
Tactically, the immediate setup is still consumer-mixed: younger households feel squeezed, but they remain active spenders, so companies tied to value, experiences, and wellness may continue to hold up better than broad discretionary names. The near-term risk is that weak youth sentiment and job softness start to show up in specific demand pockets.
Over the next few months, the most likely path is continued bifurcation: affordability stress stays elevated, while spending shifts toward experiences, small luxuries, and niche products that younger cohorts prioritize. Confirmation would come from persistent strength in youth-led categories and ongoing weakness in homebuying, family formation, or entry-level hiring; the view changes if wage and housing conditions improve materially.
Structurally, millennials and Gen Z look set to remain the marginal consumers and a growing force in capital markets, which means their preferences will shape product design, retail channels, and advice delivery. If affordability constraints persist, the long-run regime points to delayed wealth building, more speculative investing behavior, and a greater premium on human trust in financial guidance.
Younger Americans, especially Gen Z, have had worse consumer sentiment than older generations since the mid-2010s.
Katie says the University of Michigan survey turned negative for younger cohorts in March 2018 after a decline that began in 2015.
Housing affordability, higher rates, and trade-war uncertainty helped drive the deterioration in young-consumer sentiment.
The speakers connect 2015–2018 weakness to Fed hikes, housing supply constraints, mortgage rates, and tariffs on China.
Housing, healthcare, and education now absorb a much larger share of household spending than in previous generations.
Jack says nearly 40% of money spent goes to these three categories, versus about 15% for grandparents' generation.
Why are younger Americans, especially Gen Z, so negative about the economy and their financial prospects?
Katie says the shift is recent and likely reflects both economic and broader social forces. She points to housing affordability, higher rates, student loans, weak new-hire job markets, and AI concerns, along with politics, social media, and climate change.
How has affordability changed for younger generations, and what does that mean for long-term finances?
Jack argues that necessities like housing, healthcare, and education have become much more expensive relative to overall inflation, taking up about 40% of Americans' spending versus roughly 15% for their grandparents' generation. He says that leaves less room to build wealth, save for retirement, start a family, or even enjoy discretionary spending.
What has the affordability challenge looked like in your own life around housing and student loans?
Jordan says his fixed housing cost tripled after moving from a 2.5% mortgage to about 6.25%, and he contrasts that with wage growth of about 3% a year. He also says he is still paying off student loans from the University of Virginia, though he refinanced them to 4.5% after originally borrowing at 8-9%.
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