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 Business Insider 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:
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The average annual income for this group is around $565,000—versus roughly $28,700 for Gen Z as a whole.
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Most are in their mid‑20s—around 24 years old.
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Slightly more likely to be male, often married, and distinctly diverse, with more Asian and Pacific Islander individuals than among broader Gen Z.
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High educational attainment correlates: most have bachelor’s or advanced degrees.
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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:
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Flexibility and lifestyle perks of renting—central locations, higher-end amenities, and no maintenance worries.
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“Money dysmorphia”: a frame of mind where people feel less wealthy than they are due to comparisons and anxiety.
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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?
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Education: Most have degrees—and many advanced ones—which correlates with high entry salaries.
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Entrepreneurial drive: Some built their niche, freelance, or sold business ideas before traditional corporate roles.
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Early partner formation: Slightly more are married and often childless—two-earner households with no dependents boost income rates.
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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:
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Redefining wealth: High income doesn’t equate to traditional financial stability.
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Lifestyle over assets: Young high earners prioritize renting for lifestyle gains rather than buying early.
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Mental health considerations: Money anxiety doesn’t disappear at six figures—it evolves.
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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:
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Mind your metrics: Net worth > gross pay. Consider investments, debts, savings—not just salary.
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Build psychological safety nets: Where’s your buffer when markets dip or job stability wavers?
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Value choices: Renting isn’t failure—it’s freedom. But know when ownership makes sense for you.
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Ground expectations: Refine what “enough” means beyond social media comparisons.
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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.
