Read our full analysis for a more in-depth look at these trends.
Will younger-gen spending hit a gas-price speed bump?
Cooling rents fueled a Gen Z and Millennial spending surge, but now gas prices threaten to slow it down.
March 2026
Key takeaways
- Gen Z and Millennials have seen an improvement in their spending growth over the last year — in Bank of America credit and debit card data, younger generations' spending growth was higher than older generations as of February 2026.
- What's driving this? In our view, easing rent pressures are a key factor. Younger consumers are seeing rent payment growth below their wage growth according to our data. As a result their spending on discretionary items such as electronics, clothing and restaurants has improved. Tax refunds are an additional tailwind.
- But the current oil shock poses risks to this picture. Younger generations' gasoline spending is relatively high compared to their discretionary spending, so there is the potential they will need to pullback most aggressively in the face of higher gasoline prices. Further out, while the overall labor market may be “low-hire, low-fire”, it poses particular challenges for Gen Z, with potential knock-on headwinds to their spending.
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