In a world where avocado toast and side hustles have come to define\u00a0financial discourse\u00a0for younger generations,\u00a0Gen Z\u00a0is reshaping the conversation entirely. <\/p>\n
Instead of working their way up the corporate ladder or banking on a pension that may never materialize, many are turning to a radical new goal:\u00a0retiring\u00a0by 40<\/a>.<\/p>\n The strategy behind this ambition is the FIRE movement, short for \u201cfinancial independence, retire early.\u201d Popularized on social media platforms, FIRE proselytizes with a simple but strict philosophy: Embrace extreme frugality now to unlock early retirement later.<\/p>\n For a generation that came of age amid a pandemic,\u00a0record-high student debt<\/a>, a volatile job market, and an uncertain housing future, FIRE offers something refreshingly hopeful: control.\u00a0<\/p>\n But as more Gen Zers chase early retirement, one big question lingers: Can they also afford to own a home<\/a>?\u00a0<\/p>\n As more Gen Zers aim for early retirement, can they also afford a home?\u00a0 Maridav \u2013 stock.adobe.com<\/p>\n What sparked the FIRE movement?<\/p>\n The FIRE philosophy dates back to the mid-1990s and\u00a0Your Money or Your Life<\/a>, the influential book by\u00a0Vicki Robin\u00a0and\u00a0Joe Dominguez.\u00a0The authors called for a radical rethink of money and time, urging readers to live simply, question consumer culture, and define success on their own terms.<\/p>\n At its heart, FIRE isn\u2019t just about money. It\u2019s equal parts self-help and personal-finance advice, challenging the cultural norm of tying identity to consumption and encouraging intentional, values-driven living instead.<\/p>\n For Gen Z, that message has struck a chord. On platforms like\u00a0Reddit<\/a>\u00a0and\u00a0TikTok<\/a>, #FIRE content often includes budget breakdowns, DIY money hacks, and ultrafrugal meals\u2014like creator\u00a0Mia McGrath\u2019s famous\u00a050p eggs<\/a>, which cost just 65 cents per serving.<\/p>\n The FIRE philosophy dates back to the mid-1990s, which embraces extreme frugality to unlock early retirement. Dzmitry \u2013 stock.adobe.com<\/p>\n #FIRE content on social media includes budget breakdowns, money tips, and inexpensive meals. KMPZZZ \u2013 stock.adobe.com<\/p>\n Can FIRE and homeownership coexist?<\/p>\n For many Gen Zers, homeownership feels increasingly out of reach<\/a>. Despite having\u00a0more saved\u00a0than their elder millennial counterparts, just\u00a018% of Gen Z owns a home\u2014largely due to record-high prices, rising interest rates, and stagnant wages. That creates tension with FIRE\u2019s core tenets: low expenses and high savings.<\/p>\n \u201cOne of the main drawbacks to the FIRE movement is that it can be difficult for people to achieve the level of financial management they need to be able to retire early,\u201d says\u00a0Liz Hunter, commercial director at\u00a0Money Expert<\/a>.\u00a0<\/p>\n \u201cIf you have a mortgage to pay, for example, you need to be able to make sure you can keep up with your repayments while you\u2019re budgeting.\u201d<\/p>\n Only 18% of Gen Z owns a home, due to record-high prices, rising interest rates, and stagnant wages, which makes following FIRE\u2019s saving principles difficult. Impact Photography \u2013 stock.adobe.com<\/p>\n \t\t\t\t\t\t\tStart your day with all you need to know\t\t\t\t\t\t<\/p>\n \n\t\t\t\t\t\t\tMorning Report delivers the latest news, videos, photos and more.\t\t\t\t\t\t<\/p>\n \t\t\t\t\t\tThanks for signing up!\n\t\t\t\t<\/p>\n Let\u2019s break it down.<\/p>\n FIRE recommends saving 50% to 75% of your income at a minimum. Common wisdom recommends spending no more than\u00a030% of your income on housing.\u00a0<\/p>\n To afford the\u00a0monthly mortgage\u00a0on a median-priced U.S. home of $420,000, while living off half of their income and spending no more than 30% of that on housing, a FIRE homebuyer would need to earn at least $209,000 a year\u2014a salary few 20-somethings command.<\/p>\n Burning down the house: Can Gen Z have both?<\/p>\n So, can Gen Z FIRE followers still buy a home?\u00a0<\/p>\n \u201cNever say never,\u201d says\u00a0Emily Zekonis, finance expert (and Gen Zer herself) from\u00a0Raisin<\/a>. \u201cTo do both at the same time is probably out of reach for most people but, for example, if you live in a very low cost-of-living area but are making a large salary, you may be able to fill both buckets at the same time.\u201d<\/p>\n Emily Zekonis, finance expert and a Gen Zer, says it is not impossible for FIRE followers to buy a home. luismolinero \u2013 stock.adobe.com<\/p>\n More realistically, most young adults will have to choose between FIRE and homeownership. Or, at the very least, compromise on one to make space for the other. That might mean saving a little less aggressively in favor of buying a home \u2014 or opting for a smaller property in a more affordable market.<\/p>\n \u201cLike most things, restriction is great in moderation,\u201d Zekonis adds.\u00a0<\/p>\n