Gen Z Could Become 'Poorest' Generation Since Great Depression, Senator Warns

Ruben Gallego says barriers to homeownership may leave Gen Z financially disadvantaged.

Published on Feb. 20, 2026

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U.S. Senator Ruben Gallego is concerned that Gen Z could become the "poorest" generation of Americans since the Great Depression if more is not done to address housing affordability. Gallego noted that access to housing has become a "true, true worry" as young Americans struggle to purchase their first homes due to rising prices and limited supply.

Why it matters

Homeownership has long been a key driver of generational wealth, and Gallego's warning highlights the potential long-term financial impact on Gen Z if they are unable to break into the housing market. This issue has broader implications for the economic future of an entire generation.

The details

Gallego said young Americans have become "retirement rich" and "house poor," a combination that likely won't set them up well for the future. The median age for first-time homebuyers in the U.S. recently increased to 40, underscoring the growing barriers younger generations face. Gallego has collaborated with a Republican senator on legislation to allow citizens to borrow more from their retirement accounts to purchase a first home. To address the issue, Gallego said getting more housing supply on the market quickly and ending "NIMBYISM" (Not in My Backyard) would help reduce costs.

  • Gallego made the comments during a speaking event in the Phoenix Valley on February 18, 2026.

The players

Ruben Gallego

A Democratic U.S. Senator who represents Arizona and has expressed concerns about housing affordability issues impacting younger generations.

Todd Young

A Republican U.S. Senator from Indiana who has collaborated with Gallego on legislation to help first-time homebuyers access their retirement accounts.

Corey Woods

The Mayor of Tempe, Arizona, who asked Gallego about what can be done to make homes more affordable in the state.

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What they’re saying

“This new generation, this younger generation of Americans, if we don't really change the course of this country, will be the poorest generation of Americans in the history of this country since the Great Depression.”

— Ruben Gallego, U.S. Senator

What’s next

Gallego noted that he has collaborated with Republican Senator Todd Young on legislation to allow citizens to borrow more from their Individual Retirement Account to purchase their first home, which could help address the affordability challenges facing younger generations.

The takeaway

Gallego's warning highlights the growing threat of housing unaffordability for Gen Z, which could have lasting impacts on their ability to build wealth and financial security. Addressing this issue will require a multi-pronged approach, including increasing housing supply, reducing regulatory barriers, and exploring innovative financing solutions to help first-time buyers.