Homeownership still the ‘American Dream’ — but it comes at a cost
Americans are putting off marriage, kids and careers until they can afford a home, according to a new report from Coldwell Banker Affiliates.
Key points:
- With the median age of first-time buyers now at 40, major life milestones — and opportunities to build equity — could be significantly delayed.
- Despite the current housing affordability crisis, 72% of millennials and 70% of Gen Zers hope to buy a home in the next five years.
- Many hopeful homeowners are willing to make sacrifices, including taking on a second job, co-buying or purchasing a less desirable home.
Aspiring homeowners in the U.S. — including 84% of Gen Zers — are delaying major life decisions until they can afford to buy a home. That's especially significant given the median age of first-time buyers is now 40 years old, a record high.
Overall, 71% of Americans seeking homeownership are avoiding big moves like marriage, having children and making career shifts until they can make it to the closing table, according to Coldwell Banker Affiliates' American Dream Report, released today.
Homeownership remains foundational for many Americans
Out of about 3,000 adults surveyed, more than half said homeownership defines the American Dream, outranking having children, starting a career or retiring by age 67.
Nearly 1 in 5 aspiring homeowners said they are putting off marriage or children to make that dream a reality. A smaller portion, 17%, said the same of changing jobs or having a pet, and 15% are delaying entrepreneurship.
"People view housing not only as a foundation for personal and financial stability, but also as one of the most effective vehicles for building long-term wealth," Jason Waugh, president of Coldwell Banker Affiliates, said in a press release Monday.
"However, when people delay major life events in pursuit of homeownership, it inevitably shapes patterns in household formation and consumer behavior."
This wouldn't be as troubling 45 years ago, when Americans could generally afford a home by their late 20s. But the median age of today's first-time buyer has climbed to 40, according to the National Association of Realtors' 2025 Profile of Home Buyers and Sellers report.
"Delayed or denied homeownership until age 40 — instead of 30 — can mean losing roughly $150,000 in equity on a typical starter home," NAR Vice President Shannon McGahn said in that report.
The American dilemma: housing affordability
While inventory has increased in recent months, homes remain largely unaffordable, and the share of first-time buyers is at an all-time low (21%, according to NAR data). Many middle-income households can't afford the median existing home price — more than $410,000 as of this month — while low-income families have little chance of buying at all.
On the flip side, all-cash buyers are at an all-time high. Over the past five years, homeowners have gained an average of $140,900 in equity, NAR reported, and some may be leveraging those gains to avoid taking out a mortgage when buying their next home.
Despite affordability challenges and competition from cash buyers, many younger Americans are determined to buy for the first time. Based on Monday's report, 72% of millennials and 70% of Gen Zers hope to buy a home in the next five years.
How to make the American Dream a reality
The stark reality: For the middle-income bracket alone, the U.S. has a deficit of more than 400,000 affordable homes, NAR reported in May.
To remedy this, American cities need to add affordable housing (including smaller homes), reform zoning regulations and modernize construction methods to help builders produce homes more quickly and affordably, according to NAR, which advocated for several pro-housing policies during its mid-year legislative meetings in June.
Consumers want to see solutions as well. During the 2024 presidential election, housing affordability was the primary issue for Gen Z, and 91% of those surveyed by Redfin said the issue informed their vote.
But even as the country grapples with the affordability crisis, hopeful homeowners are finding ways to make the math work, the Coldwell Banker survey found: 42% of respondents said they would be willing to take on multiple jobs, while 35% would buy a less ideal home or move to a more affordable area.
More than a third said they have considered co-buying with family or friends, with Gen Z most willing to consider this arrangement (63%). About 1 in 5 of Gen Zers are already living with parents to save up for a home.
"While affordability remains a significant hurdle, the desire for homeownership among Americans is so strong that many are restructuring their lives to make it a reality," Waugh said.