Gen Z is the most stressed generation in California. Could the cost of living be the issue?

Kingston Desuasido

Today, around 94% of California youth, aged 14-25, have reported that they are experiencing regular mental health stresses, according to The American Institute of Stress. Now, this figure, which is quite high, hasn’t been a pattern exhibited in past generations, nor even in the past years. Edgewood, a California mental health counseling hotline, notes that this figure is up from 87%, just in 2023. So, what is driving this change?

Studies are pointing toward external factors, mainly in the realm of socio-economic issues. Among the top stress factors noted by surveyed students, one stands out among the rest: the cost of living. According to a study by the Blue Shield of California, 87% of Gen Z say that the extreme cost of living in the state is driving a lot of this stress. California is, by far, the most expensive state to live in in the country, with the median home price sitting around $854,000. This is more than double the national average, at $410,700, according to the U.S. Census Bureau. 

For many young Californians, these numbers are more than just statistics—they shape how they view their futures. As housing, tuition, groceries, and transportation continue to become more and more expensive, many students are left wondering whether they will ever be able to afford to live in the communities in which they grew up. Notably, in the Bay Area, where the median home price has reached an all-time record of $1.45 million, Gen Z feels lost. This feeling of being lost, this feeling of uncertainty, creates a constant sense of financial pressure long before many young people even enter the workforce. 

Beyond immediate economic effects, studies have shown that persistent economic stress has been linked to higher rates of anxiety, depression, burnout, and sleep problems, as noted by the National Institutes of Health. Students increasingly feel pressure to excel academically, secure competitive internships, and pursue high-paying careers simply to keep pace with the rising cost of living. Instead of the important things that youth should focus on, such as their personal growth or exploring their genuine interests, many feel that every decision they make carries significant financial consequences. 

While no single factor explains California’s youth mental health crisis, the state’s affordability crisis has become a major contributor. Addressing youth mental health, therefore, does not just mean tackling the immediate, perceivable issues, but also calling for systemic change that is creating this stress in the first place. By working to create more affordable housing, an attainable education for all, and a culture less driven on making money, California can work toward helping reduce the stress of our younger generations. 

Image credit:  American Phychological Association