Is the American Dream of Owning a Home Really Dead?
Written by
Martin Dasko
Edited by
Rebekah Evans
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According to a survey from Clever Offers, around 90% of respondents believe owning their homes is a key part of the American Dream and the notion of success. While Americans still consider homeownership part of making it, the numbers outline a challenging situation. According to a report from Realtor.com, an American family has to bring in $114,000 annually to afford the median-priced home, which is a 37% increase or $47,000 jump from 2019. With the national median list price of a house sitting at $431,250 and higher mortgage rates, it’s evident that home ownership may not be a feasible option for everyone.
Regarding generations and housing affordability, 80% of millennials, 77% of Gen Z and 75% of boomers said home ownership wasn’t affordable for the average American in the Clever Offers survey.
Is owning a house as a key part of the American Dream even possible in the current economy? We will break this idea down to determine if owning a home is still a realistic option for most in this economy.
The Traditional Dream of Owning a Home Is Dying
These are the key distinctions about becoming a homeowner as part of your dream life these days, compared to previous generations.
Traditional Homeownership Logic Has Changed
“Older formulas, like putting 20 percent down and purchasing a single-family home in one’s 20s, have been replaced by new, more adaptable plans,” said Andreis Bergeron, real estate expert and vice president of sales at RedAwning.com. The idea of purchasing a home in your 20s with your first job with 20% down may seem like a fantasy to most as it takes years to save up for the average person.
It’s clear that Americans are delaying this significant financial milestone and the research backs this up. The National Association of Realtors (NAR) reported that the median first-time homebuyer age reached 38 in 2024, an increase from 35 in 2023. It’s also worth noting that first-time home buyers accounted for 24% of all home purchases in 2024, the lowest percentage since the NAR started gathering the data in 1981.
You May Not Settle Where You Work
Bergeron said people aren’t purchasing homes where they find work since many employees work remotely. According to data from Gallup, 27% of Americans work remotely and 52% have a hybrid approach. This means that times have changed from when you would find a community for your family to settle close to your job. You may not be as inclined to find a community to settle down in, since you don’t have to be close to your employer and you may only need an internet connection to get to work.
There Are Different Expectations From Property
“These days, weighing flexibility over permanence is what concerns younger buyers in particular,” said Jeff Goodman, licensed real estate agent with Brown Harris Stevens. “Would-be buyers are also asking if it’s worth tying up most of their money in one place.” The experts find that many view a home as a financial asset or a jumping-off point for other pursuits instead of a place to lay down roots. Young people who invest in property may do so to rent it out on a platform like Airbnb or to flip it for profits instead of finding a home for their family.
Americans Have Different Priorities
Goodman explained that while homeownership is still the cornerstone of the American Dream for some, many other values, such as travel or entrepreneurship, are also important. Someone coming out of high school could be more enticed by the idea of traveling the world or starting a business instead of trying to purchase a home immediately.
You’ll Have To Change Your Approach To Buying a Home
The experts believe homeownership is still attainable for most in this economy if you’re willing to change how you approach it. Here are some of the ways that you can make homeownership a reality.
Move Outside of Your Desired Community
“The biggest key is moving outside of the most desirable area,” said Jeff Lichtenstein, broker and CEO of Echo Fine Properties in Delray Beach. “If you sacrifice in a different state or a county or two away, you’ll find there are plenty of choices.” If you want to purchase a home early in life, you’ll have to make sacrifices and compromise on where you live, as your hometown may be unaffordable based on current housing prices and mortgage rates.
You May Have To Embrace a Starter Home
Lichtenstein found that couples who enjoy the weekend projects are investing in fixer-uppers and starter homes. While you may not be able to purchase your dream home in your ideal community, you could get into the real estate market if you’re willing to fix up a place. This may require you to spend more time on DIY projects around the house, but it will help you enter the real estate market earlier.
Get Creative About Buying a Home
The experts found that people still want a place to call their own, but they’re broadening their horizons and embracing creative options due to affordability challenges.
Some creative options for buying a home in 2025 are:
- Buying multi-family properties to house-hack and save on expenses. This means living in one unit and renting out the others to help cover a mortgage that would otherwise be unaffordable.
- Applying for FHA mortgage loans since they only require 3.5% down.
- Co-buying with friends or family to get into the market sooner.
While the idea of owning a home isn’t out of reach, the perceptions around it have changed due to affordability issues and the changing workplace landscape. Homeownership has become more of a choice instead of just an expectation as the next logical step in adulthood.
More From GOBankingRates
Sources:
- Clever Offers, “2025 Data: Surprising Findings on Homeownership by Generation.”
- Realtor.com, “April 2025 Monthly Housing Market Trends Report.”
- Andreis Bergeron, RedAwning.com
- National Association of Realtors, “Profile of Home Buyers and Sellers 2024.”
- Gallup, “Hybrid Work.”
- Jeff Goodman, Brown Harris Stevens
- Jeff Lichtenstein, Echo Fine Properties
