Gen Z's spending glow-up is running into a $4 gas problem

AP Photo/Claire Rush

• Gen Z and millennials saw a spending resurgence in the second half of 2025.
• But the higher gas prices caused by the Iran war are threatening to slow that progress.
• How the labor market evolves will be a deciding factor.

It seems like Gen Z and millennials can't catch a break these days.

For those looking to buy their first house, the market has been tough for years, essentially gridlocked by high prices, high mortgage rates, and low inventory.