The dream of home ownership in America is out of reach for many families, with 86% of current renters expressing a desire to buy a home but stating they cannot afford to. Among those renters, 54% do not believe they will ever be able to afford a home. The affordability crisis is fueled by surging home prices and elevated mortgage rates, creating a divide between those who own homes and those who do not. Younger Americans, in particular, are finding it difficult to purchase a home, with 90% of renters under 45 unable to afford a home compared to 79% of those over 45.
Despite holding high-paying jobs, some working parents, such as Brent Bjornsen, a pediatrician in Phoenix, Arizona, are struggling to keep up with rising home prices. Bjornsen, who is renting a home to pay off student debt, expresses a desire to own a home but feels that it is out of reach due to financial setbacks and overwhelming debt. The majority of Americans currently renting (68%) grew up in homes that their families owned, demonstrating the importance of home ownership in American culture.
While mortgage rates have eased in recent months, home prices continue to rise, making home ownership a distant dream for many Americans. The median existing-home price reached a record high of $426,900 in June, making it increasingly difficult for renters to save for a down payment. Jeremy Andersson, a digital marketing specialist in Georgia, has lost hope of ever owning a home, highlighting the emotional toll that the housing market crisis is taking on individuals and families who feel they have failed in achieving the American Dream of home ownership.
Starter homes are now worth $1 million or more in 237 cities, up from just 84 cities in 2019, making it nearly impossible for many families to afford a home. The CNN poll found that only about one-third of current homeowners believe they could afford to buy a similar home in their neighborhood today, even among households earning $100,000 or more a year. Despite following the expectations of society, such as going to college and obtaining good jobs, many families are still unable to afford a home, leading to feelings of frustration and failure.
The housing market crisis is shaping the American Dream of home ownership into an unattainable goal for many families, with rising home prices and high mortgage rates creating barriers to purchasing a home. Renters, especially younger Americans, express a desire to own a home but feel hopeless about their future prospects of achieving that goal. The emotional toll of the housing market crisis is palpable, with individuals like Andersson feeling like failures for not being able to provide a home for their families. The divide between those who can afford to own a home and those who cannot continues to widen, posing a significant challenge to achieving the American Dream for many families.
