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The Enduring Importance of Homeownership in the American Dream

Homeownership has been a quintessential aspect of the American Dream for generations. A recent survey conducted by Realtor.com® has shed light on the current status of this ideal, revealing that a significant proportion of Americans still view owning a home as an essential life goal.

Survey Insights on American Sentiments Towards Homeownership

According to the survey results, about 64% of Americans consider homeownership as one of their primary life goals. Furthermore, 50% believe that owning a home is essential for achieving long-term wealth. These statistics underscore a persistent aspiration among Americans, despite facing challenges related to affordability and the availability of homes in today’s market.

Laura Eddy, Vice President of Research and Insights at Realtor.com®, commented on this phenomenon, stating, “Home and land ownership has been a part of the American Dream for generations. Although modern financial conditions present challenges, the ideal of a home that belongs to the individual remains a key pillar in the pursuit of the American Dream and wealth accumulation for families.”

Generational Perspectives on Homeownership

Interestingly, generational differences present a nuanced view of homeownership. While 75% of Americans believe that owning a home is integral to the American Dream, older generations, particularly 84% of Baby Boomers, maintain the strongest beliefs regarding the importance of homeownership. The sentiment tends to decline among younger generations, with 74% of Gen X, 69% of Millennials, and 67% of Gen Z agreeing with the notion, reflecting a possible shift in perspective shaped by current economic realities.

Nonetheless, the desire for homeownership remains strong among younger Americans, particularly Millennials (69%) and Gen Z (70%), who view it as a life goal more than their elder counterparts—Gen X (62%) and Baby Boomers (59%). This trend may be attributed to the fact that younger generations are less likely to already own homes compared to older generations.

Confidence in Achieving Homeownership

Despite economic apprehensions, more than 59% of the respondents expressed confidence in their ability to own a home. Among these optimistic individuals, Baby Boomers lead the pack, with 63% affirming their belief in homeownership as an achievable goal. Surprisingly, Millennials showed a notable level of confidence as well, with 57% regarding homeownership as attainable, followed by Gen X (55%) and Gen Z (54%).

A contributing factor to this optimism may stem from the increasing age of first-time homebuyers, which has reached historic highs. In 2024, the median age of buyers peaked at 56 years, and the typical repeat buyer age was 61 years, suggesting that as age increases, so too does the confidence and ability to navigate the home buying process.

Wealth Creation Through Homeownership

The aspiration for homeownership is not solely intertwined with personal satisfaction; it is increasingly viewed as a crucial factor for wealth building, especially among Millennials and Gen Z. Notably, 53% of Millennials and 52% of Gen Z recognize homeownership as vital for establishing long-term wealth, compared to only 48% of Gen X and 45% of Baby Boomers. This perception is remarkable, considering the ownership statistics which reveal that 66% of Baby Boomers currently own their homes, compared to 54% of Gen X, 43% of Millennials, and 33% of Gen Z.

Methodology of the Survey

This survey was carried out by Realtor.com® on November 7-8, 2024, with a national sample of 2,201 adults aged 18 and older. The data gathered was balanced to reflect demographics such as gender, education, age, race, and geographic location across the United States.

Conclusion

The findings from this survey affirm that the American Dream of homeownership continues to resonate strongly among many Americans, indicating both a desire for and belief in the importance of creating a stable home life and the potential for long-term wealth creation. With obstacles still present, how America moves forward amidst these challenges remains to be seen. However, this persistent belief is a strong indicator that homeownership will likely remain a significant aspiration for many generations to come.