Gen Z Out-Earns Boomers by 50% and Millennials by 25% at 28

Considering inflation, how do today's millennials compare with the Boomers at the same life stage? Young invincibles looked at this using Federal Reserve information in 2017 and determined that Millennials between the ages of 25-34 had 20% less income than the boomer generation did in 1989. They had a household median income of $40,581, compared with $50,910 for Boomers. Well, that's changed.

Millennials now make 18% more than the last generation did at ages 36-40, according to a study from the Federal Reserve Board. How does Gen Z stack up? At 28 years old, Gen Z (born 1997-2012) has a median wage that is 25% higher than Millennials' and 50% higher than Boomers'.

Do Millennials earn less than Boomers did at the same age?

For the most part, no. The only area they fall behind is those who don't have a college education. When you look at median income by generation at the same age without a college degree, millennials make 12% less than their Boomer counterparts at age 30. Workers with a college degree earned about the same until age 35, then surpassed others after that. There are more college graduates in the workforce now as well. In 1990, 23% of people ages 25 to 29 had a bachelor's degree, and in 2023, that number is 40%.

Gen Z vs. Millennials vs. Boomers: who is better off?

The main takeaway is mixed: Gen Z is earning more than past generations at age 28, but inflation, housing costs, and job availability are making life harder for young people. Gen Z, ages 20 to 24, working full-time, earns a median weekly income of $831. Gen Z makes $42,000 at age 28, which is 25% more than millennials and 50% more than boomers. Inflation hasn't slowed down either, with consumer prices increasing by 3.4% from the past year through August. Housing increased by 3.0% as well. There were only 35.2% of households under the age of 35 that owned a home compared to 36.4% last year. Job availability has also become harder for young people.

Young graduates are seeing unemployment rates of 5.6% and 42% underemployment. Young graduates who studied majors that are more susceptible to AI have had a harder time finding employment in Texas and earn ~5% less than others. When we look at millennial income vs parents, it isn't as bad as we thought it was back in 2017, while the Gen Z cost of living looks like it is struggling.

Three generations at 30: a composite family story

This family is a composite built from official data, not a real household. Millennials vs Boomers at age 30 tells the story. The average Boomer household held $46,230 in debt, only $630 of it from school, and a home worth $55,312. The average Millennial household held $90,104 in assets, including $14,510 in student debt, and a home worth $91,472 in 2019 dollars.

Millennials were also less likely to own: 38% of the college-educated, against 54% of Boomers. The Gen Z relative is better paid, at $42,000 at 28, 50% more than Boomers. Full-time work (65% vs. 60% in 1993) and bachelor’s degrees (40% vs. 24%) are up. So is debt: 43% of 25- to 29-year-olds carry student loans, up from 28%.

Homeownership rates by generation

Homeownership by generation looks close on paper.

• Under-35 householders owned homes at 35.2% in the second quarter of 2026, against 39% in 1989.
• At age 30, the gap is wider: 24% of non-college Millennials owned a home, versus 49% of non-college Boomers.

Gen Z faces steeper entry costs.

• Vacant homes for sale had a median asking price of $343,800, about 3.9 times the median household income of $87,460.
• The 30-year mortgage rate reached 7.40% on October 8, up from 6.30% a year ago.
• NAR’s survey puts the median age of first-time homebuyers at a record 40.
• Young adults living with parents: 16% of adults 25 to 34, and 58% of those 18 to 24.

Are young Americans less likely to out-earn their parents?

By one well-known measure, yes.

• Chetty and colleagues found that 92% of children born in 1940 earned more than their parents at age 30, against 50% of those born in 1984, mostly because growth became less evenly shared.
• The picture improves later: a Federal Reserve study found Millennials’ household income 18% above the prior generation’s at ages 36 to 40.

Education cuts both ways.

• 40% of 25- to 29-year-olds held a bachelor’s degree in 2023, up from 23% in 1990, and bachelor’s degree holders earn $1,628 per week, compared with $994 for high school graduates.
• But 20% of families carry student debt, with a median balance of $25,600.
• Meanwhile, undergraduate certificate enrollment rose 10.2% in spring 2026, the fastest of any credential.

What the generational gap means for boomers

Boomers hold about 52% of US household net worth, yet their benefits depend on younger workers.

• Social Security’s retirement trust fund is projected to run short in late 2032, when income would cover 78% of scheduled benefits, and Medicare’s hospital trust fund in 2033, when it would cover 89%.

Selling to younger buyers may get harder.

• Householders 65 and older own homes at 78.6%, against 35.2% under 35,
• families under 35 hold a median of $33,000 in net worth
• Mortgage rates are 7.40%.

The great wealth transfer boomers will leave is real but uneven.

• Nearly 30% of White families report receiving an inheritance or gift, versus about 10% of Black and 7% of Hispanic families.

Conclusion

Gen Z and Millennials aren't falling behind baby boomers. At age 30, they both had similar net worth, and Gen Z makes 50% more than Baby Boomers at age 28. The main takeaway is that higher debt, higher housing prices, higher interest rates, and student loan debt are affecting families under 35, with a net worth of $33,000. These pressures may also be compounded by AI taking away entry-level hiring and the skill sets needed to obtain certifications, and it will impact Gen Z the most.

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