A viral social media post by 30-year-old entrepreneur Andrew Yeung pointed out what he described as Gen Z’s comfort with “extravagant” spending on luxuries while forgoing the homes, cars and children that previous generations pined after. His Threads post, under @andrew.today, stirred a generational debate: Are younger adults financially reckless, or are they adapting to an economy that has shut them out of traditional milestones?
Yeung, a former tech strategist for Meta and Google turned events entrepreneur in New York City, reflected on younger generations who, in his words, are “so absurdly priced out of traditional, big purchases like houses, cars, kids” that they turn to “designer clothes, phones, extravagant vacations, or DoorDash because that’s all that feels within reach.”
The sentiment, echoed by other experts, has tapped into a broader cultural shift. Gen Z adults, facing economic headwinds including high housing prices, less disposable income and student loan burdens, are delaying or forgoing traditional markers of adulthood—while appearing to spend more freely on travel, fashion, and fun.
“Young people are defaulting to opting out of traditional high-ticket purchases,” Yeung told Newsweek. “Given the increasing cost of living, stagnant salaries, and decreasing disposable [income], they substitute those for things that are more affordable but unnecessary.
“See: luxury vacations, watches, music festivals, fashion designer wear, and other discretionary purchases. This satisfies the short-term urge or dopamine reward for Gen Zers to ‘get a return on their disposable income.’”
Gen Zers, who were born between 1997 and 2012, and younger millennials too, have the lowest homeownership rates of any generation—something that many economists also attribute to student loan debt, rising housing costs and stagnant wage growth.
Research from Hamptons, a real estate agency in the U.K., found that while millennials faced an average monthly mortgage payment of approximately £863 ($1,167) for their first home when adjusted for inflation, Gen Zers are looking at monthly repayments of £1,739 ($2,350).
In the U.S., Gen Zers face an average mortgage payment cost of $1,882 each month.
On average, Gen Zers have low levels of disposable income among working-age adults, which has led to many reporting that saving for property feels “unrealistic” within the next decade. Nearly half of Gen Zers run out of money each month, and less than a quarter consider themselves financially stable, according to a 2025 survey from Step.
A Reddit thread in which a 44-year-old small business owner expressed surprise at how frequently young customers used expensive delivery apps like DoorDash and Uber Eats instead of picking up food in person—despite the added fees. His post sparked hundreds of comments debating whether this behavior reflected irresponsibility or a rational shift in spending priorities.
Michael Mack, an award-winning leader in the luxury resale space, has a more positive spin on Gen Z’s spending. He told Newsweek that younger consumers are redefining luxury and what can be accessible.
“We’re seeing Gen Z prioritize experiences and self-expression over traditional milestones, and that includes spending on luxury items like travel, fashion, and dining,” Mack said. “From my perspective in the secondhand luxury space, this generation is savvy—they’re not avoiding luxury, they’re redefining it.
“They seek value, flexibility, and authenticity, often choosing pre-owned luxury to stretch their dollars while still enjoying high-quality goods.”
He agreed that broader economic factors also play a role.
“Economic pressures like student debt and rising housing costs are key here,” he said. “For many, home ownership feels out of reach, so their financial goals have shifted to focus on attainable rewards and curated lifestyles.”
Read the full article at Newsweek: https://www.newsweek.com/millennials-eye-opening-take-on-gen-zs-extravagant-spending-goes-viral-10475110
