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Gen Z is defiantly ‘giving up’ on ever owning a home

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The housing market only continues to look more bleak for younger generations—and it shows. The average age for a first-time homebuyer recently jumped to 40, signaling the housing market is starved for affordability.

And younger generations are so disappointed and frustrated by the state of the housing market they’re spending more of their earnings than they’re saving, working less, and making risky investments, according to a recently published paper by Northwestern University and University of Chicago researchers. 

In other words, younger generations are “giving up.” That’s according to Northwestern’s Seung Hyeong Lee and Chicago’s Younggeun Yoo, who also cited a 2024 Harris Poll survey about the state of real estate that showed 42% of Americans and 46% of Gen Z respondents agreed with this statement: “No matter how hard I work, I will never be able to afford a home I really love.”

While households typically adjust consumption to stay on track with long-term goals like buying a home, younger people are crossing a “threshold at which they begin to give up on [buying a home] entirely.”

The idea this generation is “giving up” is also echoed by an analysis by Gen Z’s favorite economist Kyla Scanlon, who argues younger people face a sense of “financial nihilism,” a phenomenon in which they question the American Dream amid stagnant wages, student loan debt, and corporate dominance. 

Gen Z has “watched the American Dream rot before their eyes, as higher education becomes a luxury good, a housing crisis exacerbates the cost of living, all backdropped by political stagnation and rapid (perhaps even too rapid) technological advancement,” she wrote, making the point this generation has lived through not one, or two, but three major economic downturns. 

Gen Z is saving less than they’re spending

The first phenomenon Lee and Yoo outline regarding Gen Z’s defiance toward buying a home is that they’re spending more money than they’re bringing in. 

“We find that when home prices rise to the point where renters can no longer afford to buy a house within the foreseeable future by saving their wages, renters give up on home purchases and instead use their savings to increase consumption,” they wrote. 

Several other studies this year have shown Gen Z is doomspending rather than saving, with one study showing nearly half don’t even have an emergency fund saved up. A Bankrate survey also showed as many as 27% of Gen Z carry more debt than they do savings.

“Many Gen Zers find themselves walking a financial tightrope, torn between covering immediate expenses or setting money aside for emergencies and paying for goods on credit instead,” previously told Fortune.

Some of that may be due to the fact Gen Z expects to inherit money and assets from the $124 Great Wealth Transfer, but a Northwestern Mutual survey shows very few can expect a windfall of cash upon a relative’s death.

Gen Z works differently

We’ve all heard Gen Z supposedly doesn’t work as hard as other generations, which may or may not be true—it’s somewhat impossible to measure. Lee and Yoo found in their research Gen Z has cut down on their effort at work because they don’t think it’s worth it if they can’t afford long-term financial goals. They cite answers to psychographic questions asking about the importance of “always giving my best effort” at work. Their research shows the share of renters reporting low work effort is nearly twice the rate observed among homeowners.

“This shift is consistent with a reallocation of time and effort by discouraged renters,” the researchers wrote. “As the perceived returns to labor (in terms of progressing toward homeownership) diminish, so does the value they place on maintaining high work effort.”

Scanlon has a different take on Gen Z’s work effort, though. 

She argues, “maybe it’s not that they don’t want to do anything anymore, but rather they don’t want to do anything in the way that it’s always been done anymore.” 

Gen Z is making risky investments

The third way Gen Z is acting out against their inability to buy a home, the researchers argue, is by taking on risky investments, like buying cryptocurrencies. Their research also shows when buying a home for a Gen Zer seems unaffordable, they also increase their leisure spending.

“Renters with a plausible path to homeownership may exhibit lower risk tolerance, as significant losses could derail their progress toward that goal,” they wrote. “In contrast, those who have already given up on homeownership may perceive they have less to lose, and therefore engage more willingly in risky financial behavior.”

Other 2025 research indicates Gen Z is far more likely to own crypto than have a retirement account, illustrating how they’re more willing to take on riskier investments. And finance experts are worried about the pattern, they told Fortune’s Emma Burleigh.

“It’s never a bad thing for people in any generation to take interest in their personal finances,” Mark Smrecek, financial well-being market leader at Willis Towers Watson (WTW), told Fortune’s Burleigh. “I think as long as they’re looking at risk and reward based on what their goals are, it’s generally fine. But I do get concerned when I see over-indexing toward risky assets.”



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2 U.S. service members and one American civilian killed in Islamic State ambush in Syria

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Two U.S. service members and one American civilian were killed and three other people wounded in an ambush on Saturday by a lone member of the Islamic State group in central Syria, the the U.S. military’s Central Command said.

The attack on U.S. troops in Syria is the first to inflict casualties since the fall of President Bashar Assad a year ago.

Central Command said in a post on X that as a matter of respect for the families and in accordance with Department of Defense policy, the identities of the service members will be withheld until 24 hours after their next of kin have been notified.

U.S. Defense Secretary Pete Hegseth posted on X: “Let it be known, if you target Americans — anywhere in the world — you will spend the rest of your brief, anxious life knowing the United States will hunt you, find you, and ruthlessly kill you.”

The shooting took place near historic Palmyra, according to the state-run SANA news agency, which earlier said two members of Syria’s security force and several U.S. service members had been wounded. The casualties were taken by helicopter to the al-Tanf garrison near the border with Iraq and Jordan.

SANA said the attacker was killed, without providing further details.

The Britain-based Syrian Observatory for Human Rights said the attacker was a member of the Syrian security force.

The U.S. has hundreds of troops deployed in eastern Syria as part of a coalition fighting the Islamic State group.

Last month, Syria joined the international coalition fighting against the IS as Damascus improves its relations with Western countries following the ouster of Assad when insurgents captured his seat of power in Damascus.

The U.S. had no diplomatic relations with Syria under Assad, but ties have warmed since the fall of the five-decade Assad family rule. The interim president, Ahmad al-Sharaa, made a historic visit to Washington last month where he held talks with President Donald Trump.

IS was defeated on the battlefield in Syria in 2019 but the group’s sleeper cells still carry out deadly attacks in the country. The United Nations says the group still has between 5,000 and 7,000 fighters in Syria and Iraq.

U.S. troops, which have maintained a presence in different parts of Syria — including Al-Tanf garrison in the central province of Homs — to train other forces as part of a broad campaign against IS, have been targeted in the past. One of the deadliest attacks occurred in 2019 in the northern town of Manbij when a blast killed two U.S. service members and two American civilians as well as others from Syria while conducting a patrol.



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Stock market rotation out of AI is just getting started, analysts say

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Investors rushed out of the AI trade this past week and piled into materials, industrials, financials and healthcare, representing a sector rotation that could have staying power, according to Wall Street analysts.

Oracle stock led the latest AI selloff after the hyperscaler’s earnings report and spending guidance renewed fears about excessive capital expenditures.

Jeremy Siegel, Wharton professor emeritus and WisdomTree chief economist, told CNBC on Friday that it’s hard to be certain about the current stock market rotation because there have been “so many head fakes in the past.”

“But as I said, this one has more legs in the sense that there are more things that are happening that throw doubt on how fast or how profitable all the AI buildout is going to be,” he added.

In Oracle’s case, recent delays in data center construction may actually end up being a silver lining if it slows expenditures, but there are still more questions than answers about the profitability of AI, Siegel said.

He noted his research has shown that when companies grow spending faster than their income, they ultimately overexpand, hitting profits and stock returns.

“I’m not saying that that’s necessarily going to happen to AI or certainly all the AI, but that narrative has to come in mind,” Siegel warned.

Also on Friday, Bank of America Securities investment strategist Michael Hartnett said markets are frontrunning a “run-it-hot” scenario expected for next year by rotating into a Main Street trade made up of mid- and small-cap stocks, while getting out of a Wall Street trade consisting of mega-cap names.

Eric Teal, chief investment officer for Comerica Wealth Management, had a similar view in a note on Thursday, saying that the market was dominated by momentum and AI stocks during the first eight months of the year.

But since then, concerns about valuations, margin sustainability, and high debt shifted sentiment around the technology sector.

Financial and healthcare stocks have been more appealing, while small caps and even “micro-cap stocks” will benefit from falling short-term rates, he added.

“More importantly, we foresee this rotation in the early stages with relative valuations remaining attractive,” Teal predicted. 



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Even in Silicon Valley, skepticism looms over robots, while ‘China has certainly a lot more momentum on humanoids’

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Robots have long been seen as a bad bet for Silicon Valley investors — too complicated, capital-intensive and “boring, honestly,” says venture capitalist Modar Alaoui.

But the commercial boom in artificial intelligence has lit a spark under long-simmering visions to build humanoid robots that can move their mechanical bodies like humans and do things that people do.

Alaoui, founder of the Humanoids Summit, gathered more than 2,000 people this week, including top robotics engineers from Disney, Google and dozens of startups, to showcase their technology and debate what it will take to accelerate a nascent industry.

Alaoui says many researchers now believe humanoids or some other kind of physical embodiment of AI are “going to become the norm.”

“The question is really just how long it will take,” he said.

Disney’s contribution to the field, a walking robotic version of “Frozen” character Olaf, will be roaming on its own through Disneyland theme parks in Hong Kong and Paris early next year. Entertaining and highly complex robots that resemble a human — or a snowman — are already here, but the timeline for “general purpose” robots that are a productive member of a workplace or household is farther away.

Even at a conference designed to build enthusiasm for the technology, held at a Computer History Museum that’s a temple to Silicon Valley’s previous breakthroughs, skepticism remained high that truly humanlike robots will take root anytime soon.

“The humanoid space has a very, very big hill to climb,” said Cosima du Pasquier, founder and CEO of Haptica Robotics, which works to give robots a sense of touch. “There’s a lot of research that still needs to be solved.”

The Stanford University postdoctoral researcher came to the conference in Mountain View, California, just a week after incorporating her startup.

“The first customers are really the people here,” she said.

Researchers at the consultancy McKinsey & Company have counted about 50 companies around the world that have raised at least $100 million to develop humanoids, led by about 20 in China and 15 in North America.

China is leading in part due to government incentives for component production and robot adoption and a mandate last year “to have a humanoid ecosystem established by 2025,” said McKinsey partner Ani Kelkar. Displays by Chinese firms dominated the expo section of this week’s summit, held Thursday and Friday. The conference’s most prevalent humanoids were those made by China’s Unitree, in part because researchers in the U.S. buy the relatively cheap model to test their own software.

In the U.S., the advent of generative AI chatbots like OpenAI’s ChatGPT and Google’s Gemini has jolted the decades-old robotics industry in different ways. Investor excitement has poured money into ambitious startups aiming to build hardware that will bring a physical presence to the latest AI.

But it’s not just crossover hype — the same technical advances that made AI chatbots so good at language have played a role in teaching robots how to get better at performing tasks. Paired with computer vision, robots powered by “visual-language” models are trained to learn about their surroundings.

One of the most prominent skeptics is robotics pioneer Rodney Brooks, a co-founder of Roomba vacuum maker iRobot who wrote in September that “today’s humanoid robots will not learn how to be dexterous despite the hundreds of millions, or perhaps many billions of dollars, being donated by VCs and major tech companies to pay for their training.” Brooks didn’t attend but his essay was frequently mentioned.

Also missing was anyone speaking for Tesla CEO Elon Musk’s development of a humanoid called Optimus, a project that the billionaire is designing to be “extremely capable” and sold in high volumes. Musk said three years ago that people can probably buy an Optimus “within three to five years.”

The conference’s organizer, Alaoui, founder and general partner of ALM Ventures, previously worked on driver attention systems for the automotive industry and sees parallels between humanoids and the early years of self-driving cars.

Near the entrance to the summit venue, just blocks from Google’s headquarters, is a museum exhibit showing Google’s bubble-shaped 2014 prototype of a self-driving car. Eleven years later, robotaxis operated by Google affiliate Waymo are constantly plying the streets nearby.

Some robots with human elements are already being tested in workplaces. Oregon-based Agility Robotics announced shortly before the conference that it is bringing its tote-carrying warehouse robot Digit to a Texas distribution facility run by Mercado Libre, the Latin American e-commerce giant. Much like the Olaf robot, it has inverted legs that are more birdlike than human.

Industrial robots performing single tasks are already commonplace in car assembly and other manufacturing. They work with a level of speed and precision that’s difficult for today’s humanoids — or humans themselves — to match.

The head of a robotics trade group founded in 1974 is now lobbying the U.S. government to develop a stronger national strategy to advance the development of homegrown robots, be they humanoids or otherwise.

“We have a lot of strong technology, we have the AI expertise here in the U.S.,” said Jeff Burnstein, president of the Association for Advancing Automation, after touring the expo. “So I think it remains to be seen who is the ultimate leader in this. But right now, China has certainly a lot more momentum on humanoids.”



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