Is the American Dream Fading?

The dream of home ownership is slipping away for many Americans, with 40 percent of renters now believing they’ll never own a home. That’s a sharp increase from just 27 percent last year, highlighting how rising home prices and high mortgage rates are making buying a home feel out of reach.

The biggest barrier for renters is affordability. Nearly half say home prices are simply too high, while others struggle to save for a down payment or afford monthly mortgage payments. With the average 30-year mortgage rate still hovering around 7 percent, the cost of home ownership continues to rise faster than wages. First-time buyers now need to earn roughly $76,000 to afford a typical starter home, nearly double what was required before the pandemic.

Meanwhile, rents remain near record highs, making it even harder for renters to set aside money for a future home. While some relief may be on the horizon as new apartment construction helps stabilize rental prices, the overall cost of housing—both renting and buying—remains historically high.

As affordability challenges persist, younger renters are still the most hopeful about eventually buying a home, while older generations are more likely to have given up on the idea altogether. Unless home prices cool significantly or mortgage rates drop, the trend of lifelong renting may become more common for many Americans.