Bank of America’s Better Money Habits team conducted a study early in 2024, and due to the high cost of living, over half of Gen Z, ages 12-27, report they cannot afford to live a life they are comfortable with, and 37% receive financial help.

Thirty-one percent live with their parents for that reason.

Marion County, which is the most populated county in Indiana, has a median house cost of $239,994 as of June 2024. To save up for a house that costs that much in one year, a person’s hourly salary would have to be $115. The average hourly wage is $26.

Realistically, saving up for a few years would allow young adults to buy a house, but monthly payments for an apartment can be anywhere from $800 to $1,200 a month in Indiana. For a majority of young adults working full time, that is nearly half of their monthly income. With additional monthly costs like insurance and groceries, that does not leave much money to put toward saving for a house.

Peter Bell, CEO of the National Housing & Rehabilitation Association, says he is glad he does not have to buy housing today, but there are companies that aim to help people buy affordable houses and apartments.

“People should be encouraged to look for properties coming online that are affordable,” Bell said. “Affordable housing is built in communities everywhere. There are always efforts to help buyers.”

Despite organizations aimed to help buyers, there are not enough affordable houses to go around, which leaves many young Hoosiers struggling.

Nolan Ramsey, 20, worked full-time at Jeff Campbell Heating and Cooling for over a year in order to buy his first house in Beach Grove a few months ago.

“It’s a little rough because my rent and bills cost half of my paychecks for a month,” Ramsey said.

The common rule is that no more than 28% of your paycheck should go towards your mortgage payment, yet most end up paying a much higher percentage.

Ramsey still finds ways to save up for his future financial decisions but has to limit a lot of his spending elsewhere.

“I think too many people get comfortable [benefiting from] their parents, and they do not usually end up getting a job until after they are out of school,” Ramsey said. He thinks that you should work full time if you live with your parents and buy a house as soon as you have enough money saved.

“Most of my friends still live at home, and they do not have a plan for when they have enough money.”

He feels he is further ahead of his friends financially and in terms of life long goals since he has his own house, even if he is spending over half of his monthly paycheck to pay for it.

Because of the costs of living, people are postponing and delaying life milestones like buying a home, saving for retirement, buying a car, starting a family and more.

Holly O’Neill, president of retail banking at Bank of America, said in a press release, “It is critical that we continue to empower Gen Z to work toward achieving financial health and meeting their long-term goals.”

Bank of America’s study shows that reducing Gen Z’s financial dependence is key in creating a society with a successful future; Gen Z is the next generation getting ready to fill big positions in the workforce.