I’m a Millennial, which means when I entered my freshman year of college in fall 2007, the economy was already entering a recession.
So for most of my adult life, the economy has felt unstable.
And lately, the gap between wages, costs, and actually getting ahead feels wider than ever.
No matter which financial milestone my friends and I hit, it still somehow feels like we’re not any closer to being “rich.”
Buy a house? Now you’re house poor. Invest in the stock market? Great, but also terrifying. Get a raise? Perfect. That’ll cover groceries, eggs that cost $12, and the creeping fear that every minor health issue could financially ruin you.
So what’s actually going on?
The math changed
It feels like you’re “poor” even when you’re not because the math of housing, wages, and basic costs is completely different from what previous generations faced.
Housing: In the mid-1980s, the median U.S. home cost about 3.6x the median household income. By 2023, that ratio climbed to 5.3x, with some analyses putting it closer to 6x. Between 1985 and 2023, incomes rose about 241% in nominal terms while home prices rose around 408%. The ratio of what you earn to what a decent home costs is just more brutal now.
Wages: From 2020 to 2024, wages rose about 18% but prices rose about 21%, meaning purchasing power actually fell 2 to 3%. And real income growth has slowed, especially for younger workers.
Basic costs: The cost of a basic American life rose faster than earnings in 2024, with housing and childcare seeing some of the biggest jumps.
Why housing feels impossible
Several structural things are stacking the deck:
Home prices have grown faster than wages for decades, especially in big metros and coastal states. In California, the median home is nearly 2.5x the national median, making the squeeze even worse in places like LA and the Bay.
There’s a real housing shortage. Not enough homes built, very low vacancy rates, and too many people competing for the same limited supply.
Higher interest rates since 2022 mean even if prices flatten slightly, monthly payments can still be enormous.
Existing owners with low 2020 to 2021 mortgages are locked in, not selling, which keeps inventory tight and prices sticky.
Millennials and Gen Z also carry student debt and higher living costs, leaving less for down payments and savings.
Healthcare is eating your paycheck
Healthcare costs grow faster than general inflation in the U.S. Overall health spending grew 7.2% in 2024, reaching $5.3 trillion, or about $15,474 per person. Between 2021 and 2024, medical costs rose about 7% per year on average, and pharmacy costs increased even faster at around 9% per year. Even when general inflation cools, healthcare keeps climbing.
You’re not crazy
The system changed. The goalposts moved and nobody sent a memo. Once you understand that, you can stop measuring yourself against an economic reality that no longer exists and start making decisions based on the one you’re actually living in.
The rules changed. Now we adapt.

Thania (TA Content Mgr)