Why Gen Z Could Soon Become the Richest Generation in History—Despite Struggling With Rent Today
Co-Founder and Chief Data Scientist
As rising rents and a surging cost of living put Gen Z under immense financial pressure, their future wealth prospects are quietly emerging as a global economic story. Bank of America, a leading force in U.S. finance, has published new projections that reveal an unexpected reversal: despite their daily struggles, today’s youngest adults could soon become the wealthiest generation in world history.
The Weight of Today’s Economic Reality
Gen Z—the cohort born between 1997 and 2012—has entered adulthood facing formidable challenges. Affordable housing feels out of reach, and skyrocketing rents force many members to delay or sacrifice traditional milestones. Stories of young graduates forced into precarious jobs, or scraping by just to pay basic bills, are now commonplace. Economic analyses highlight how even the minimum wage often falls short of covering essentials, underscoring the stress shadowing these young adults’ early careers.
Behind the Financial Paradox
Yet the same researchers painting a tough present are also pointing to a future shaped by a transformative force: the intergenerational transfer of wealth. According to Bank of America, Gen Z is standing on the edge of an unprecedented inflection point. The bank’s study reveals that, despite current hardships, Gen Z has already managed to collectively build $9 trillion in global wealth over the past two years—a figure set to accelerate rapidly.
By 2030, Bank of America’s projections place Gen Z’s total wealth at $36 trillion, with their assets expected to reach a monumental $74 trillion by 2040. The scale and speed of this capital growth breaks historical patterns, making Gen Z both the largest and the richest age group the world has ever seen, likely by the mid-2030s. Within a decade, Gen Z is expected to comprise about 30% of the global population—a fact that will cement their power not only in numbers but also in economic influence.
The "Great Wealth Transfer" Explained
What’s driving this anticipated surge isn’t just increasing wages or incremental savings. The main catalyst is what economists now call the "Great Wealth Transfer." Over the coming decades, trillions in assets held by older generations—especially Baby Boomers and some Gen Xers—will move down the family tree to Millennials and Gen Z. Bank of America estimates that nearly $84 trillion will be passed on through inheritances in the United States by 2045. According to the bank’s analysis, around 38% of Gen Z members are likely to receive a significant share of this inheritance-driven capital.
This unprecedented cash injection reshapes the picture for Gen Z. While Millennials and older Gen Xers will also benefit, the scale of money set to reach Gen Z positions them for a dramatic wealth leap, regardless of how tough things look today.
A Generation Poised to Redefine Prosperity
Financial industry leaders are watching these shifts closely. As Gen Z comes of age, the ways they use wealth could diverge sharply from their predecessors. Shaped by years of economic hardship and high living costs, many in Gen Z have delayed or reconsidered markers of adulthood like early home ownership or starting a family. Instead, spending has tilted toward experiences, travel, wellness, and convenient online purchases—a pattern established before sudden wealth arrives.
Experts foresee Gen Z becoming one of the most "disruptive" generations in terms of how economies, markets, and even social systems are structured. With more money at their disposal and different priorities in mind, they may redefine what it means to be a consumer, prioritizing previously overlooked sectors and fundamentally shifting demand.
While dismissing the ambitions or prospects of younger generations has a long tradition—etched, as some point out, even in ancient hieroglyphs—today’s demographic tide cannot be ignored. Gen Z, for now counted out by some, is set to become a force of economic transformation. Their rise is not merely a cycle repeating itself, but a sign that the very shape of wealth and influence in the world is about to change.
