A new state comptroller’s report paints a stark picture of the financial pressures facing young adults across New York, finding that higher education levels have not translated into easier paths to independence for Millennials and Gen Z.
The report, Obstacles to Independence: Financial Challenges Facing Young Millennials and Gen Z, examines New Yorkers ages 18 to 34 and concludes that rising housing costs, higher unemployment, growing debt, and shifting job markets are leaving many young adults struggling to keep up.
More educated, but not more secure
Young adults in New York are more educated than previous generations. Nearly half of residents ages 26 to 34 hold a bachelor’s degree or higher, a significant increase over a decade ago.
But the report finds that education alone has not guaranteed stability. Unemployment among young adults stood at 8.6 percent in 2023, more than double the rate for those 35 and older. For those ages 18 to 25, unemployment climbed to 12.1 percent.
The disparity is even sharper across racial and ethnic lines. Black and Hispanic young adults experience unemployment rates more than twice those of their white peers.
Entry-level jobs are shrinking
The job market has also shifted beneath young workers’ feet.
Service and administrative roles—fields where young adults make up a large share of the workforce—are projected to shrink in coming years. The report points to artificial intelligence as one factor accelerating the decline in entry-level opportunities, particularly in tech and office support jobs.
Nationally, entry-level tech jobs fell by 36 percent between 2020 and 2025. Employers are increasingly favoring experienced workers when integrating AI, making it harder for new entrants to get a foothold.
Housing costs delay independence
Housing emerged as one of the biggest barriers to independence.
In 2023, nearly one in four New Yorkers ages 26 to 34 lived with their parents. Among those who rented, more than 35 percent spent over 30 percent of their income on rent and utilities, a level considered cost-burdened.
Homeownership is increasingly out of reach. Home prices in New York have jumped more than 50 percent since 2019, and just 15.1 percent of young adults owned a home in 2023, well below the national average.
Debt loads keep growing
The report also highlights rising debt burdens.
New York young adults carry some of the highest student loan balances in the country, averaging just over $30,300 per borrower. Credit card debt among young people has more than doubled nationally since 2013, reflecting growing pressure from everyday expenses.
At the same time, core costs like housing, food, and transportation have risen faster than incomes. Between 2018 and 2023, spending on these essentials increased by nearly 40 percent, far outpacing income growth.
Disconnected youth still a concern
While the number has declined over the past decade, the report estimates nearly 200,000 New Yorkers ages 18 to 25 were “disconnected” in 2023, meaning they were neither working nor enrolled in school.
Barriers such as childcare, transportation, and access to training continue to play a role, particularly in rural and lower-income communities.
Warning signs for the state’s future
State Comptroller Thomas DiNapoli warned that these trends could have long-term consequences for New York’s workforce and economy.
The report calls for policies focused on affordability, housing supply, access to quality jobs, and workforce training to help young adults achieve financial stability and upward mobility.
Without intervention, the report suggests, many young New Yorkers may struggle to match the economic security of earlier generations.
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