Gen Z started saving at 19. Housing costs erased the lead.

Gen Z workers began building wealth at an average age of 19, beating millennials by six years and baby boomers by more than a decade. That head start has collided with the most expensive housing market in modern U.S. history, according to U.S. Bank’s 2026 Wealth Survey of 5,000 adults conducted between June 15 and July 1.

Fifty-six percent of Gen Z respondents told U.S. Bank they followed conventional financial advice but remain short of their goals. Sixty-two percent reported struggling to make financial headway.

The core search intent for anyone tracking young workers today boils down to two questions: Why does an unprecedented early start on saving fail to produce stability, and what are employers changing to keep that demographic from quitting? The math answers the first question directly.

In 2025, the median existing single-family home sold for 4.7 times the median household income, according to Harvard’s Joint Center for Housing Studies’ The State of the Nation’s Housing 2026 report. That ratio sat at 3.2 throughout the 1990s. The National Association of Realtors’ 2025 Profile of Home Buyers and Sellers pegged the median age of first-time buyers at 40—an all-time high. During the 1980s, buyers typically closed their first deal in their late twenties. Twenty-nine percent of Gen Z and 26% of millennials surveyed by U.S. Bank said they have given up on homeownership entirely for financial reasons.

Tuition compounds the squeeze. Published in-state fees at public four-year colleges averaged $11,950 annually in the 2025-26 academic year, roughly double the inflation-adjusted $5,940 charged in 1995-96, according to the College Board’s Trends in College Pricing and Student Aid 2025 report. Median family income climbed just 39% after inflation over a comparable 30-year stretch ending in 2024.

Getting to work costs more too. About 7 in 10 U.S. workers drive alone to their jobs, according to the U.S. Census Bureau. The average new vehicle sold for $50,562 in September—$52 below the record—according to Kelley Blue Book. Cox Automotive reported the average used car listing hit $27,239 in August, up 7% year-over-year and the highest mark since December 2022.

Employers attempting to retain younger staff are testing benefits structures built around these fixed costs rather than traditional retirement timelines. The SECURE 2.0 Act, effective since 2024, allows companies to match employee student loan payments with 401(k) contributions. Workers directing their paychecks toward debt can accumulate retirement funds without diverting cash into a plan.

Standard matching formulas still require disposable income many entry-level employees lack. Amy Spurling, founder and CEO of Compt, which runs employee stipend programs, told Fortune that a 23-year-old paying $2,400 in monthly rent on an entry-level salary cannot afford to contribute enough to trigger a match through no fault of their own.

“If your employees under 30 are skipping the match and ignoring the perks, that tells you something isn’t working,” Spurling said.