Their millennial predecessors, however, came of age in the aftermath of the 2008 financial crisis, which lowered their early-career income prospects.
However, those born from 2001 look to be on a lower-income trajectory than those born a few years earlier.
The UK’s growing NEETs crisis – referring to those aged 16-24 that are not in employment, education or training – casts an ominous shadow over recent progress on incomes.
Lalitha Try, economist at the Resolution Foundation, said: “Gen Z are earning more in their early careers than their much-maligned millennial counterparts, giving them a living standards boost.”
Aldermore Insights with Jon Cooper: Edition 9 – Why lending strategy is becoming more central in buy to let
Sponsored by Aldermore
Generation ‘Hotel of Mum and Dad’
The Resolution Foundation found that 63% of young adults aged 20-24 now live in their family home, up by 12 percentage points since 2011.
Among those aged 25-29, the share of those who stay at home stood at 24%, up from 19% in 2011.
High rents and house prices are pushing young people to continue living with their parents.
Back in 2012-14, even among those aged 24 or under, a third were private tenants. But by 2022-24, that had fallen to 28%.
While staying at home would suggest younger people can save for a deposit, they still require financial support from their parents to get on the property ladder.
Around one-third of first-time buyers last year had parental help, around 20 percentage points more than 20 years ago.
Try added that Gen Z “are far more likely to still live with parents, with almost two-thirds of those aged 20-24 now calling Hotel Mum and Dad home. Impracticably high rents and house prices have driven this boom.”
She added: “With around one-third of recent first-time buyers now receiving familial help, the government should consider a targeted Starter Deposit Scheme to help those young people without access to the Bank of Mum and Dad onto the housing ladder.”
