What is Middle Class? Gen Z See Things Very Differently

Class, the gauge by which millions of Americans measure their social and economic position, is being interpreted differently by the older and younger generations, new research commissioned for Newsweek has found.

Polling conducted by Redfield and Wilton Strategies found that commonly used demarcators of class are considered differently by Gen-Z, those born between 1997 and 2012, and older generations, particularly the silent generation, baby boomers and Gen-X—all born in the years prior to 1964. The polling surveyed 1,500 people in the U.S. between February 18 and 19, 2024.

Class is a way of measuring the economic, employment and social status of Americans. There has long been debate over what makes someone upper, middle or working class, with sociologists disagreeing on how to measure this, who exactly fits into which category, and where the boundaries between the classes lie.

Like the generations before them, Gen-Z has something different to offer the status quo adapted by those that have come before them. Whether that be how they keep track of their finances or who they support politically, Gen-Z has rebelled against the older generations in terms of its opinions on how they view themselves and others when it comes to the U.S. class system, most of which is a result of the times they have grown up in, according to experts.

The Results

The polling asked Americans of all generations about activities and milestones, such as holidays, college education and home ownership.

When asked in what class they would place someone who owns their own home, 57 percent of Gen-Z respondents said that person would be middle class, while 28 percent said they would be upper class. In comparison, the overwhelming majority—80 percent of the 59 plus group—said such a person would be middle class, with only 8 percent saying they would be considered upper class.

Another area in which stark differences were apparent was on the topic of college education. An overall majority agreed that a college education is largely an undertaking of the middle classes. But 58 percent of Gen-Z think this is true, whereas 75 percent of older Americans considered having a college degree to be middle class—a 17 point difference.

Despite some stark differences, there were things that Gen-Z and older Americans agreed on. When asked how they would consider someone who goes on a foreign holiday once a year, both groups broadly agreed this is an upper class thing to do—50 percent of Gen-Z and 56 percent of those born in 1964 and before. They also agreed on wearing designer clothes—63 and 65 percent respectively—believing it to be an upper class practice.

Why Is Class So Different for Gen-Z?

Lawrence Sprung, author of Financial Planning Made Personal and Founder of Mitlin Financial, described the differences between the generations as a “class blur” that has been influenced by two main factors.

“The two things that have taken place in the last 20 years that have had the greatest impact on what the younger generations believe are lower, middle, or upper class are the onset of social media and the Great Recession,” he told Newsweek. “Social media has skewed perceptions of what is considered lower, middle and upper class and what they believe is achievable to attain each of these levels.”

“Financial opportunity” lost in the recession that followed the global financial crisis of the late 2000s has impacted how Gen-Z individuals view their finances, Sprung says. After many watched their parents potentially struggle through the crisis when they were, most likely, less than 10 years of age, Sprung said this has caused them to be “far more conservative” with their finances in an attempt to avoid the hardships their parents did.

The difference in opinions on home ownership is hardly surprising—according to research conducted by S&P Global Market Intelligence, owning a median value home in more than half of U.S. states was, as of 2023, unaffordable for the median household.

“This crunch is even deeper than that during the subprime housing crisis” that occurred between 2007 and 2010, the researchers reported.

Of the polling conducted for Newsweek, those who are most likely to be parents of Gen-Z folks, Gen-Xers born between 1965 and 1980, tended to roughly agree with the younger generation on questions regarding college attendance, flying business class and monthly grocery expenditure. However, they largely disagreed on topics such as home ownership, owning more than one home, and going on domestic and international vacations.

James Fox, head of data and analytics at Canvas8, a cultural and behavioral insight agency based in London, says that the economic situation of the years in which Gen-Zers have grown up has pushed “the middle class beyond their reach.”

Fox told Newsweek that it is “no surprise to see the downward trend in viewing home ownership and getting a college degree as something accessible to anyone other than the rich.”

“With some of these traditional milestones off the table, Gen Z, like Gen Y before them, have reprioritized—which is why they take a different view on activities older generations may have considered superfluous luxuries, like frequent vacations and foreign travel,” Fox said. “Under economic pressure, but good at stretching budgets, they indulge in experiential luxuries more often, so don’t see them as superfluous or unobtainable.”

Enjoying the smaller things in life rather than focusing on life-changing purchases like owning a home isn’t necessarily a bad thing, Matt Gellene, head of consumer investments at Bank of America told Newsweek.

“Despite the financial stereotypes often associated with young adults, younger generations are making smart choices with their money and prioritizing their futures,” he said.

Gellene puts this down to age—Gen-Zers are at the point in their lives that should be enjoyed, before other responsibilities fall into place later down the line.

He said: “Their current phase of life and priorities may cause them to view household incomes differently, and with the current rhetoric on social media, middle class may not be seen as desirable or affordable.”