Staff ReportsA recent poll shows that only 10% of Americans believe the dream of homeownership is still within reach, which may explain why the “American dream” is starting to feel more like an “American nightmare.” The Wall Street Journal and NORC conducted this survey with 1,502 participants, and the results reveal a bleak picture—especially for young people, who have apparently been relegated to living in basements, counting the days until they can finally afford a down payment.
With inflation at crazy highs and interest rates soaring to heights not seen in over 20 years, the added pressure is enough to make many question whether homeownership is just a cruel joke in the land of opportunity. A staggering 89% of respondents still assert that owning a home is crucial for their future. Yet, when it comes time to put that dream into action, only 10% admit they can quickly achieve it. Financial security and a comfortable retirement don’t fare much better, boasting just 9% and 8% on the “easily attainable” scale. The only thing surging higher than inflation appears to be the frustration of hopeful homeowners.
Obama-Biden-Harris regime in power 12 of last 16 years. They're in power now. They want four more years? We can't afford it.
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American dream out of reach? Only 10% polled said they can afford to buy homehttps://t.co/SGbiJwzLXO— jackwindsor (@jackwindsor) September 3, 2024
In stark contrast to twelve years ago, when still over half of Americans believed in the promise of homeownership, today’s youth seem to be caught in a fiscal quagmire. The American Institute of “We Were Better Off” is now more prevalent than ever. Studies show that while most Americans born in 1940 enjoyed better circumstances than their parents, that number has dropped dramatically for those born in the 1980s. Apparently, the only inheritance they’re likely to receive is a decade’s worth of cringe-worthy memes about adulting.
The “lock-in” effect exacerbates the housing market chaos: many homeowners who refinanced at lower interest rates during the pandemic have decided not to sell, effectively choking the supply of homes on the market. They must feel like they’ve struck gold with their low rates while newbies are left to scrape together a king’s ransom to get through the door—if they can even figure out how to open it. With builders struggling to keep pace with demand—and let’s be honest, it’s not as if they have some magic wand to conjure new homes out of thin air—hope is a dwindling commodity.
Renting is no walk in the park either, especially since rental prices have skyrocketed by over 26% since early 2020, making many reconsider if squeezing into the family’s basement might not be so bad after all. A report reveals that more than half of all renter households are “cost-burdened,” meaning they spend more than 30% of their income on housing. That might be an elegant term for “financially straitjacketed,” but it describes the reality where 61% of renters find the median apartment rent to be more of a pipe dream than a reality.
Things aren’t expected to improve soon, as Bank of America projects a long slog ahead for the housing market. They’re talking about a potential “unstuck” status not coming until 2026 if we’re lucky. With high home prices and mortgage rates expected to remain on the high side, first-time homebuyers are left to play a game of patience and frustrations as they wait for a sign that the real estate market will finally show some mercy. Meanwhile, financial advisers across the nation are left shaking their heads and signing up for Pinterest to find out how to decorate their cardboard boxes.
