Gen Z’s new American Dream: Skip the mortgage, book the flight

For many young adults, the essence of the American Dream has shifted from homeownership to travel, even as trip costs rise. According to a NerdWallet's Travel Price Index, U.S. travel costs increased by 9% in August compared to the previous year, with airfares up by 23.4%. Despite this, nearly 44% of U.S. Gen Z travelers take spontaneous leisure trips frequently or very frequently, compared to 25.2% of American travelers overall, as per a Future Partners survey.

Housing, a key component of the traditional American Dream, may be where this shift is most evident. Among Gen Z renters, 83% feel that renting enables them to save for life experiences rather than invest in homeownership, according to a survey conducted by property management software company Entrata and Qualtrics. Around half (45%) prioritize travel and career growth over buying a home.

This trend isn't limited to Gen Z, as a 2024 Entrata survey of U.S. renters found that 41% consider their "American Dream" unrelated to homeownership. While homeownership remains a dream for many, it feels increasingly unattainable due to affordability issues. Even those who wish to purchase a home are open to compromising on space, with 74% of Gen Z respondents willing to take a smaller home compared to 64% of millennials, 57% of Gen X, and 43% of baby boomers, according to a Cotality report.

Additionally, Gen Z is the generation most willing to reduce lifestyle spending to afford a home, highlighting that travel and homeownership continue to vie for financial resources. For some, the compromise is as simple as postponing moving out of their parents' home. Nearly half (49%) of adults under 30 lived with a parent in 2025, an increase of 12 percentage points from 2019, according to the Federal Reserve.

This shift could potentially reshape marriage, children, and homebuying patterns. While living at home may not align with the postwar image of upward mobility, it frees up a significant portion of the budget for other priorities, such as travel. Changes extend beyond living arrangements and vehicle choices. A Skyscanner survey revealed that 52% of U.S. Gen Z respondents would give up dining out if it advanced their next trip, while 40% would cut back on haircuts.

These small sacrifices, when combined with more modest housing goals and frugal car choices, suggest a redefined spending hierarchy. The new American Dream might be less about accumulating more possessions and more about experiencing more.