Gen Z Isn’t Buying Homes: How Their 2025 Spending is Redefining Inheritance

For generations, passing down a home was the ultimate symbol of building a legacy. But in 2025, Gen Z is reshaping what that looks like, and it goes way beyond real estate. Their financial priorities reflect a dramatic cultural and economic shift, a shift that's redefining what inheritance will look like for the future. 

With median home prices rising over 44.6% since 2020—from $272,750 to $394,250 in 2025 and mortgage interest rates hovering around 6.67%, many young adults find homeownership simply out of reach. In fact, only 26.1% of Gen Z adults currently own a home, compared to 40% of baby boomers at the same age.

Unlike their parents and grandparents, who often saw homeownership as the ultimate marker of adulthood and stability, Gen Z is investing in micro-luxuries, experiences, digital assets, crypto investments, collectibles, and wellness. They’re renting longer, relocating frequently, and prioritizing liquidity over locked-in real estate. 

What Gen Z is Spending On in 2025

Micro-Luxuries: Everyday Upgrades

Gen Z’s not scared to spend on the little luxuries that fit their lifestyle. It’s Oura Rings to track your health, AirPods Max with custom cases because personal style matters, and Whoop bands keeping your fitness data in check. A bold spritz of Dior Sauvage for that confidence boost. Golf memberships for the connections. 

These micro-luxuries aren’t random splurges; they’re intentional purchases that align with how Gen Z wants to live, and feel every day.

Collectibles: Style That Holds Value

Gen Z values collectibles for their potential to appreciate in value. They choose designer bags like the Louis Vuitton Neverfull and Telfar for style and status, timeless sneakers like Nike Air Force 1s and Adidas Sambas for everyday versatility, and watches like the Tissot, Tudor Black Bay, Rolex Submariner, and Omega Speedmaster as symbols of class and success.

Experiences: Living, Not Just Owning

For Gen Z, experiences are part of how they live. Solo trips to places like Hawaii for yoga, surfing, and a break from the day-to-day grind. Saving up for a great meal, whether it’s a Michelin-star spot or just something worth remembering. Investing in career coaching to build confidence and move forward. It’s not just spending it’s building the life they want.

Wellness & Self-Optimization: Investing in Themselves

They’re investing in feeling good, inside and out. That means therapy or mental health apps like Calm or headspace. Pilates classes or an Equinox membership to stay strong and clear-headed. A few supplements here and there. Maybe some aesthetic treatments for that extra confidence boost. The whole idea is feeling like yourself, but better.

How These Spending Habits Are Redefining Inheritance

Gen Z’s spending is redefining what inheritance means. Many aren’t buying homes to pass down, but they’re still building wealth in intentional ways. It might be the watch they saved up for, hoping to hand it down to their kids one day, or a collection of sneakers and designer bags chosen not just for style but for how they can appreciate in value.

 Even their experiences are part of their legacy. Instead of scrapbooks, its digital photo albums, archived stories, and social media accounts full of memories they want to share. Their focus on quiet luxury, wellness, and experiences isn’t just about enjoying life now, it’s about creating a legacy that shows who they were and sets the next generation up to live well too.

What This Means for Estate Planning

Traditional estate plans often focus on tangible assets. For Gen Z, estate planning will need to include:

• Digital Assets: Passwords to digital wallets, online accounts, and cloud photo libraries.

• Collectibles & Micro-Investments: Watches, sneakers, designer bags, and other nontraditional assets that hold real value.

• Experience Funds: Travel funds or personal development funds that reflect their values and how they want to care for future generations.

• Wellness Provisions: Healthcare directives, mental health wishes, and end-of-life plans that reflect their focus on wellness and self-optimization.

Estate planning is no longer just about passing down the family home. It’s about ensuring every part of their life, wealth, and values are protected and passed on intentionally.

Conclusion

Gen Z’s spending today builds a different kind of legacy—one that reflects who they are and what they value.

Start planning now to protect both your traditional and digital assets for the future. Your estate plan should be as intentional as the life you’re building.

Trust & Will makes estate planning simple so you can create a customized, state-specific plan from the comfort of your own home. Take our free quiz to discover which estate plan best fits your needs today, to secure your family’s future.

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