Younger Americans Are Stronger Than the Headlines Suggest — But Still Face a Major Hurdle

Younger Americans are frequently described as financially fragile or irresponsible. dv01's Are the Kids Still Alright? report challenges that perception with a data-driven look at income, debt, education, housing, and spending behavior.

Quick Insights

• Income growth is outpacing the nation: Early-career workers continue to deliver the strongest income gains in the economy, driving Relative Income Ratios to multi-decade highs across the 18–34 age range.

• Debt burdens are improving: Younger households have seen meaningful declines in per-capita debt—driven by reductions in student loans and mortgages—reflecting healthier balance sheets and more measured borrowing behavior.

• Housing is the critical pressure point: Homeownership among adults under 35 has slipped back to pre-pandemic levels, household formation is slowing, and the U.S. is facing a structural housing shortage of 3.7–4.7 million units—the most significant barrier facing younger generations.