It seems like Gen Z and millennials can’t catch a break these days.<\/p>\n
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For those looking to buy their first house, the market has been tough for years, essentially gridlocked<\/a> by high prices, high mortgage rates, and low inventory. The job market is also in a “Great Freeze<\/a>“: the unemployed can’t find jobs, and those with them can’t grow.<\/p>\n But there has been one economic bright spot recently for the Gen Z and millennial cohorts: how much money they’ve been pumping into the economy.<\/p>\n New data from Bank of America shows that their spending growth<\/a> in the second half of 2025 surpassed older generations like baby boomers for the first time in years. The reason why is encouraging: rent growth is cooling at a time when wage growth is heating up. Good vibes, right?<\/p>\n Well, I hate to be the bearer of bad news, but the Iran war could put an end to this still-nascent period of economic strength.<\/p>\n As with most bearish scenarios involving the war, the flashpoint is oil-market disruption<\/a>. In this case, the focus is on gas prices at the pump<\/a>, which are pushing $4 a gallon nationally.<\/p>\n Gen Z is the most exposed, BofA finds. It’s the only generation to not see gasoline spending as a share of overall consumption fall from pre-pandemic levels. Millennials, meanwhile, have seen a smaller decline than Gen X or boomers.<\/p>\n BofA notes that Gen Z is in a situation where it’s commuting for the first time, and income is still relatively low. Millennials may make more money, but they’re raising families and doing the most driving.<\/p>\n To put it in fully zoomed-out terms, the Iran war is threatening to cut off a spending resurgence for younger generations.<\/p>\n