They’re more purpose-driven, politically aware, and emotionally tuned-in than ever before – but not in the way you’d think.
A new report has lifted the lid on the inner workings of Gen Z in 2025, and it paints a picture far deeper than the overused avocado on toast stereotype.
The Gen Z Wellbeing Index 2025 has revealed the subtle but powerful ways young Australians are reshaping their identities, values and mental health in an increasingly uncertain world.
And some of the biggest changes are happening under the surface.
On one hand, Gen Z is growing up.
The report by online youth site Year13, and Scape – the biggest purpose-built student accommodation owner and operator in Australia – found there has been a marked rise in internal resilience, with more young people reporting a stronger sense of purpose and passion for hobbies.
But on the other hand, their outer world is rattling them more than ever.
Prominent issues such AI, political division, climate change and inequality are increasingly on their radar – and not just in a scroll-past it way.
Year13 Co-Founder Will Stubley told news.com.au young Australians are under increasing pressure.
“We can see the rising concerns of climate change, war and Artificial Intelligence sit alongside the perennial problems of youth like figuring out their future, fatigue and burnout,” Stubley said.
“Figuring out their future in particular continues to be the most widespread problem for youth. “As industries and technology are evolving and the cost of living stays high, many Gen Zs are feeling even more pressure to make the right decisions about their future,” he said.
“They want to know opportunity lies ahead of them but with so much change going on around us it means it’s never been more important to show young people how they can fit into the modern world.
“The data shows a clear need for greater support around the transition from school to work as young people seek out future-focused pathways to give them secure careers. If we want to improve wellbeing we need to improve their readiness for the workforce,” Stubley said.
Gen Z is paying attention, and they’re feeling it. The emotional toll is showing up in real terms, with OCD diagnoses on the rise, and major stressors such as education, unemployment and politics taking centre stage in their lives.
Even politics, once a background noise for many, has doubled in prevalence as a reported wellbeing stressor.
Concern about societal and political division has doubled from 22 per cent last year to 44 per cent today among young people, while it nearly doubled for Artificial Intelligence (42 per cent, up from 24 per cent) as well.
Western Australian teen Milla Penberthy believes these external factors are definitely taking a toll on her generation.
“Most of us are a very progressive group of people and we are pushing for these rights,” the 18-year-old told news.com.au.
Despite AI being a major concern for her peers, Ms Penberthy believes we should learn to work with it rather than fear it.
“It is such a helpful thing to have in our lives. I can see where the fear comes from become it’s such a new concept, but we just need to remember that it’s there to help us,” she said.
Lyvia is an international student from Malaysia who has been living in Australia for three years.
The 24-year-old said that as an international student she has to “be updated on the political side of things.”
“Especially when it comes to things about my visa. You need to be watching to see what’s changing and what’s being removed,” she told news.com.au.
Both Penberthy and Lyvia said financial stress is at the forefront of their minds as they navigate living away from home.
“Obviously the cost of living in Sydney is very bad at the moment. So that’s definitely a contributing stress factor,” Penberthy said.
In their quest to cope, Gen Z is diversifying their toolkit – swapping bar nights and fitbits for memes, listening to music and music.
Screen based distractions such as gaming and social media are still big, but a noticeable swing towards non-digital self-soothing is on the rise.
Lyvia told news.com.au she founds comfort from the stressors of daily life with movies, and in her first year of her university studies enjoyed going swimming and volunteering, but said these days she is studying and working so much that she can’t find the time for them.
Penberthy said she prefers to self-soothe offline, making sure she has time to pursue her love for netball and swimming.
“I love netball and swimming. I try to get myself out of my room at least once a day doing some form of exercise,” she said.
Here’s the curveball: Young Aussies are drinking and vaping significantly less.
The number who never touched alcohol has jumped from 13 percent to 22 percent, and daily vaping rates have nearly halved. It’s a fay cry from the doom-and-gloom headlines that once painted them as lost in a haze of nicotine and cheap savvy b.
“With all the new research that’s coming through about how bad alcohol and vaping are, our generation seems to be realising that we need to stop doing it or decrease our use,” Penberthy said.
“People are definitely becoming more aware.”
However, confidence levels remain strikingly low, especially when it comes to self-image, with just 3 per of the broader Gen Z population reporting feeling “extremely confident” about their looks.
Interestingly, not all young Aussies are faring the same.
Scape residents, according to the report, are the standouts – reporting better sleep, stronger mental health, and more energised morning than their national peers. Only 6 percent reported poor mental health, compared to 17 percent of the broader population.
For all changes however, some things haven’t budged. Young Aussies still aren’t eating enough fruit and veggies, and sleephabits remain stuck – 78 percent identifying as night owls, with phones, stress and anxiety keeping them awake.
Perhaps most telling is what hasn’t changed at all: the ever-present pressure of “figuring out my future.”
In a world that’s changing fast, that looming question still hangs heavy over Gen Z’s heads.
Bottom line? Gen Z isn’t spiralling – they’re evolving.
Quietly quitting the chaos, they’re creating new paths to resilience, questioning the status quo, and taking their mental health more seriously than ever. But the pressure of an unstable world continues to shadow their progress.
And while some might still dismiss them as chronically online or “too sensitive”, the data shows something else entirely: my generation might just be the most self-aware – and socially conscious – we’ve seen yet.
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