Born between 1997 and 2012, many Gen Z adults are entering a new financial club: HENRYs High Earners, Not Rich Yet. Even though this young group is pulling in a striking average of $565,000 per year, most aren’t trading dollars for mortgages just yet.
Despite six‑figure incomes that would dazzle older generations, many find themselves renting, feeling financially brittle, and living with a surprising sense of insecurity. Let’s unpack this remarkable new reality.
The Label Gen Z Gave Themselves
The acronym “HENRY” was coined by Fortune’s Shawn Tully back in 2003 to describe earners who bring in high incomes but haven’t translated that into lasting wealth. Today, a fresh wave of HENRYs has emerged Gen Zers who, even before age 30, are pulling in quarter‑million incomes, yet are reminding us that earning isn’t the same as being secure.
Breaking Down the Numbers
Researchers at Wsider sifted through The Census Bureau’s Current Population Survey (2024) to spotlight Gen Zers aged 18–27 earning at least $250,000 annually. Their findings:
- The average annual income for this group is around $565,000 versus roughly $28,700 for Gen Z as a whole.
- Most are in their mid‑20s around 24 years old.
- Slightly more likely to be male, often married, and distinctly diverse, with more Asian and Pacific Islander individuals than among broader Gen Z.
- High educational attainment correlates: most have bachelor’s or advanced degrees.
- A fair number are entrepreneurs or self-employed, but still heavily involved in private-sector jobs.
Renting Over Owning: A Choice, Not a Failure
Despite their income, only about 40% of Gen Z HENRYs own homes, compared to 53% among their age group. You could chalk that up to:
- Flexibility and lifestyle perks of renting central locations, higher-end amenities, and no maintenance worries.
- “Money dysmorphia”: a frame of mind where people feel less wealthy than they are due to comparisons and anxiety.
- A strategic preference: some do eventually become homeowners, and when they do, it’s often into higher-valued properties (averaging around $455,000 vs Gen Z average of $441,000).
Renting isn’t failure it’s strategic living.
The Psychology of High Earners Who Feel Behind
Inflation, spiraling home prices, and student debt have warped Gen Z’s perception of “enough.” In a 2024 Bankrate survey, most Gen Z respondents said they’d need to make $200,000 annually just to feel financially stable. But these ambitious targets don’t always align with cost-of-living realities.
This misalignment feeds what psychologists describe as money dysmorphia perceiving oneself as less well-off than friends, colleagues, or public figures even when incomes are extremely high.
What Shapes This Archetype
Why do Gen Z HENRYs earn so well and yet still feel on edge?
- Education: Most have degrees and many advanced ones which correlates with high entry salaries.
- Entrepreneurial drive: Some built their niche, freelance, or sold business ideas before traditional corporate roles.
- Early partner formation: Slightly more are married and often childless two-earner households with no dependents boost income rates.
- Rising costs: Even strong wages get eclipsed by housing, debt, and lifestyle demands.
The Debt Underpinning
Many Gen Z HENRYs still carry substantial student loans, run credit card balances, or juggle car payments. And as a unique twist they’re choosing to rent rather than sinking equity into homes. Even renting can feel precarious in contested housing markets.
What This Means For the Workforce and Economy
This emerging group signals several shifts:
- Redefining wealth: High income doesn’t equate to traditional financial stability.
- Lifestyle over assets: Young high earners prioritize renting for lifestyle gains rather than buying early.
- Mental health considerations: Money anxiety doesn’t disappear at six figures it evolves.
- Housing market ripple effects: Less millennial- and Gen Z‑led buying could dampen long-term demand.
Navigating This New Financial Landscape
If you’re aiming to be or already are a Gen Z HENRY, here are some reflective steps to guard both your finances and your peace of mind:
- Mind your metrics: Net worth > gross pay. Consider investments, debts, savings not just salary.
- Build psychological safety nets: Where’s your buffer when markets dip or job stability wavers?
- Value choices: Renting isn’t failure it’s freedom. But know when ownership makes sense for you.
- Ground expectations: Refine what “enough” means beyond social media comparisons.
- Talk openly: Normalize money conversations so you don’t feel alone in the rising-pressure club.
Gen Z HENRYs embody a powerful paradox: early-career earnings that would’ve blown past middle-class markers only a generation ago, yet shadowed by anxiety, cost concerns, and lifestyle trade-offs. Their story isn’t about failure it’s about growth in pressure-packed conditions.
Their generation isn’t merely chasing salaries they’re crafting what modern success means: autonomy, flexibility, and stability while navigating financial uncertainty. That’s no small feat, especially before age 30.
