FT: US Housing Crisis Pushing Gen Z Toward Cryptocurrency and 'Economic Nihilism'

The Financial Times reported on December 7 that worsening housing affordability in the U.S. is fundamentally reshaping Gen Z’s financial habits and spending—even pushing some young people to speculate in crypto and fostering feelings of “economic nihilism.” The gap between home prices and incomes has emerged as a key driver of young people’s economic choices. With homeownership feeling out of reach for many, some Gen Zers are choosing to “lie flat”—cutting back on savings and ramping up investments in high-risk assets like crypto. Surveys indicate that young people who see homeownership as unrealistic are more likely to do three things: save less, work less hard, and speculate more. By contrast, those who still believe they can buy a home someday are more likely to save actively and plan ahead—since shifting beliefs about that goal change their incentives. The piece stresses that as the opportunity cost of buying a home rises sharply, more young people are putting their time and money into areas with quicker, immediate returns—like the speculative market. To reverse this trend, policies must directly boost housing supply and ease price pressures, including: - Loosening residential construction rules - Expanding affordable housing development - Streamlining land-use regulations The FT argues that boosting young people’s financial literacy is also critical—including skills like budgeting, basic investing knowledge, risk assessment, and long-term savings planning—since this will shape whether they can reach their homeownership goals someday.