The American Dream: Is Homeownership Still Within Reach?
I always ask the audience the same thing when I give a keynote. “Does the American Dream still exist?”
As the years go by, I’m seeing more and more young people lean towards, “no.” Admittedly, I was surprised to see this. Being a first-generation American, I’ve always leaned on my belief in the American Dream. It has guided me, followed me, and sometimes even haunted me. But I always believed in it. Now, I’m witnessing an entire generation lose hope in a pillar of that American Dream: homeownership.
For many, homeownership has long represented stability, success, and even a rite of passage into adulthood. But in 2024, it’s becoming harder and harder to convince young people that owning a home is a realistic goal. Gen Z, in particular, seems to be redefining what success looks like in a world where skyrocketing housing costs, student loan debt, and job market instability are constant hurdles. The white picket fence dream that was once attainable feels, to many, out of reach.
The Barriers Are Real
The numbers paint a sobering picture. The median price for a home in the U.S. continues to rise, and while wages have grown, they haven’t kept pace with the cost of living, especially in urban areas where younger generations are more likely to live. When you add record-high rent costs to the equation, it’s not surprising that many Gen Zers are giving up on the idea of ever owning property. They’ve watched older millennials struggle through financial crises, rising interest rates, and now inflation. For many in their 20s, the prospect of saving for a down payment feels like a distant dream, not a reachable goal.
But this isn’t just about the numbers. It’s about the cultural shift that’s happening alongside them.
A Shift in Priorities
Unlike previous generations, Gen Z doesn’t seem as tied to the traditional milestones of adulthood. They’ve grown up during economic instability, and many of them place higher value on flexibility and mobility rather than being tied to one place. Homeownership, to them, can feel like a financial burden rather than a badge of success. They’re more interested in experiences, sustainability, and building wealth through alternative means like entrepreneurship, investments, or even the digital economy. Renting, while not always ideal, gives them the freedom to move where opportunities arise or to travel without the weight of a mortgage.
And yet, it’s hard to deny that the hope of homeownership still exists beneath the surface. It may not look exactly like it did in the past, but that longing for security, for a place to call your own, still resonates with many. It’s just that for today’s young people, the pathway to that dream feels unclear at best, or completely blocked at worst.
What Needs to Change?
So, what can be done to restore faith in this aspect of the American Dream?
For starters, we need to rethink how housing is approached in this country. The current system is, in many ways, unsustainable. Cities need to invest in affordable housing options, governments need to work to reduce the barriers to entry for first-time homebuyers, and developers need to prioritize more inclusive, accessible housing models. The American Dream needs to evolve, not disappear.
There’s also an important conversation to be had about financial literacy. For many Gen Zers, the traditional avenues to homeownership—like saving for a down payment through a steady, long-term job—just aren’t realistic. We need to teach younger generations how to build wealth in ways that make sense for the world they’re inheriting, whether that’s through real estate or other investment vehicles.
A New Version of the Dream
At its core, the American Dream has always been about opportunity and the freedom to create a life that’s better than the one that came before it. Maybe for Gen Z, that looks different. Maybe it involves building community in new ways, like through co-housing or co-operative models, or maybe it’s about creating financial independence through nontraditional means.
What remains important, however, is that this generation isn’t giving up on success—they’re just redefining it. Homeownership may not be the only symbol of the American Dream anymore, but the desire for stability, security, and opportunity is still very much alive.
So, the question remains: Does the American Dream still exist? For Gen Z, the answer may not be a simple “yes” or “no,” but rather, “it’s changing.”
And perhaps that’s exactly what the American Dream was always meant to do—evolve with each new generation, allowing them to define success on their own terms.