The American Dream is dead, and owning a home has become an impossible fantasy for most people. At least, that's what the media keeps telling us.
It’s not just the latest interest rate hikes, they say. There simply aren’t enough homes because NIMBYs have won out over builders. Institutional investors are snatching up all the houses. Americans just don’t earn enough money. Move to Canada.
The message is clear: most people can forget about ever owning their own place.
I could easily show you a hundred headlines like these.
And the “America sucks” message is sinking in. A recent survey found that 57% of renters now believe the dream of homeownership is dead and gone. To be honest, after hearing so many of these stories, I believed it, too, for awhile.
Here's the thing though: the data tells a completely different story. When you cut through the noise and look at the actual numbers, you'll see that homeownership is alive and well in America. In fact, most Americans live in a home they own.
The most recent data shows the homeownership rate at a strong 65.2% as of early 2024. That means a significant majority of people in this country have achieved the dream of owning their own home. Of course, I can even make that number look bad if I put it in a scare chart, like this common one.
But if you take a close look at the numbers above, you’ll see there’s only a 3% difference between today and 2004. That’s a fairly minor difference. And don’t forget 2004 was during a bubble fueled by an out-of-control mortgage industry happily giving loans to anyone who could scratch an “X” on the application.
What about a bit further back in history? I’ve heard a waitress could buy a house for $15,000 back then. Nope, that’s selective memory.
Back in the "good old days" when our parents were growing up, homeownership rates were substantially lower. In 1940, they sat at just 43.6%. It wasn't until after World War II that homeownership really took off, climbing to 61.9% by 1960.
Here’s a look at the numbers over a longer timeline:
That’s not so scary. When you zoom out and look at the long-term trends, the picture changes. The fluctuations are part of a natural cycle, not a sign of impending doom.
The percentage of people in each age bracket who own homes also hasn’t changed that much from 1982 to 2022, in case you were worried that more young people can’t buy a house these days.
So don't believe the naysayers, especially the ones getting paid by the click to peddle pessimism. They have a vested interest in keeping you scared, angry, and tuned in to their doomsday predictions.
The next time someone tries to tell you the American Dream of homeownership is dead, do me a favor. Ask them for the receipts.
The American Dream of owning your own home is alive and well. Anyone who tells you otherwise is selling something.
– Ken
Over the almost 60 years of married life my wife and I have bought, lived in five homes. Numbers 2, 3 and 4 were ~100 year old homes which needed substantial rehabbing to become habitable. These took a lot of work and time but enabled us to have a new home built to our specs 25 years ago. At the same time we invested in a half dozen other homes bringing them back to life for resale. We weren’t rich, held down real careers but didn’t sit around whining about “the dream is dead”.
I know everyone isn’t capable or desirous of this approach but merely say, if you dream only without doing not much comes of it. Every season and era presents its own obstacles and opportunities.
Paid off my mortgage about 2 months ago. It took 30 years and there were times when it was hard but we did it. I think it's the "it took 30 years" part that people don't like today. That's thirty years of hard work and caring that they simple want no part of. Fine. Don't commit. But don't blame someone else for the consequences.