Source: Fortune
Summary
Gen Z is prioritizing travel over traditional markers of the American Dream, such as homeownership and car ownership. Despite rising travel costs, 44% of Gen Z travelers take spontaneous trips frequently. A 2025 survey found 83% of Gen Z renters prefer renting to save for experiences. Nearly half said they prioritize travel and career growth over buying a home. The Federal Reserve reported that 49% of adults under 30 lived with parents in 2025, up from 2019. Gen Z also shows a preference for used cars and cutting back on expenses like dining out and haircuts to afford travel.
Our Reading
The numbers tell one story.
Gen Z is trading home ownership for travel.
They’re staying with parents, buying used cars, and skipping dinners.
Expenses are shifting, not shrinking.
The new dream is about seeing more, not owning more.
Author: Evan Null
Owning a home is still a dream, but feels unattainable
That doesn’t mean the dream is dead. More than half of Gen Z still considers homeownership part of the American Dream, Fortune has reported, even as affordability pushes it further out of reach.
Even those who still want to buy appear more willing to compromise on space. Seventy-four percent of Gen Z respondents said they would take a smaller home, compared with 64% of millennials, 57% of Gen X and 43% of baby boomers, according to a Cotality report released in September that surveyed homebuyers in five countries.
Gen Z was also the generation most willing to cut lifestyle spending to afford a home—a reminder that, for many young adults, travel and homeownership are still competing for the same dollars.
For some, the compromise is even simpler: Just don’t move out yet.
Nearly half (49%) of adults under 30 lived with a parent in 2025, up 12 percentage points from 2019, according to the Federal Reserve.
Travel remains a priority despite rising costs
Gen Z is cutting back on other expenses to fund travel, even as trips get more expensive. Average U.S. travel costs in August were 9% higher than a year earlier, according to NerdWallet’s Travel Price Index, with airfares up 23.4%.
Yet nearly 44% of U.S. Gen Z travelers say they frequently or very frequently take spontaneous leisure trips, compared with 25.2% of American travelers overall, according to Future Partners.
The shift is clear in housing choices. Among Gen Z renters, 83% say renting allows them to save for life experiences rather than tie up money in homeownership, according to a January 2025 survey by Entrata and Qualtrics.
Nearly half (45%) said they are prioritizing travel and career growth over buying a home. The shift extends beyond Gen Z. In a separate 2024 Entrata survey of U.S. renters, 41% said their “American Dream” has nothing to do with homeownership.
So long, white picket fence.
Spending habits are shifting, not shrinking
Gen Z is making trade-offs in other areas to afford travel. In a 2023 Cars.com survey, 55% of Gen Z respondents said they bought a used vehicle, while 55% of millennials bought new.
More recent LendingTree data show that 51.5% of Gen Z borrowers with active auto loans originally borrowed less than $25,000, compared with 36.2% of millennials and 31.4% of Gen X borrowers.
The trade-offs don’t stop at big-ticket purchases. A Skyscanner survey found that 52% of U.S. Gen Z respondents would give up meals out if it brought their next trip closer, while 40% said they’d cut back on haircuts.
Individually, skipping dinner out or stretching another month between haircuts does not buy a trip to Europe. Together with smaller housing ambitions and thriftier car choices, though, it points to a different spending hierarchy.
Maybe Gen Z suddenly decided owning a large home is lame. Or maybe homes and cars simply got so expensive that travel became one of the few pieces of the good life they can still afford.
The new American Dream is about seeing more
The new American Dream might be less about owning more and more about seeing more.
Gen Z is redefining success, trading traditional markers like homeownership for experiences like travel.
This shift reflects both economic realities and changing values. Young adults are prioritizing flexibility and personal growth over long-term assets.
They’re staying with parents, buying used cars, and cutting back on non-essentials to fund trips. The message is clear: travel is a priority, even if it means sacrificing other comforts.
For many, the dream isn’t about what you own, but where you go.
Financial choices reflect a different kind of ambition
Gen Z’s financial choices show a different kind of ambition. They’re not just saving for the future—they’re investing in the present.
By choosing to rent instead of buy, they’re freeing up cash for travel and other experiences. This approach reflects a shift from long-term security to short-term fulfillment.
It’s a bold move, but one that aligns with their values. For many, the American Dream isn’t about a house with a white picket fence—it’s about the freedom to explore and grow.
This new approach to money and life is reshaping the traditional path to success. It’s not about what you own, but what you experience.
And for Gen Z, that experience is increasingly defined by travel.
