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The American Dream Report 2025: How Housing Affordability is Shaping Lives

The latest report from Coldwell Banker Real Estate LLC, known as The 2025 American Dream Report, sheds light on a significant and alarming trend affecting young adults and aspiring homeowners across the United States. With rising housing costs making homeownership increasingly elusive, 71% of those hoping to buy a home are choosing to delay critical life decisions such as marriage, parenthood, and career changes until they can achieve this milestone.

Coldwell Banker commissioned The Harris Poll to gather insights from over 3,000 adults, including nearly 900 aspiring homeowners. The findings reveal a stark reality where many young adults no longer consider homeownership merely as part of the American Dream, but as a prerequisite for starting their lives. Here are the most revealing outcomes from the study:

Major Life Events on Hold

Nearly 20% of aspiring homeowners are putting off significant life changes:

• - Marriage and Parenthood: Both are delayed by 18% of the respondents.
• - Career Changes: 17% of participants are hesitating to explore job opportunities until they purchase a home.
• - Living Independently: 16% are continuing to live with family, citing affordability as a barrier.
• - Starting a Business: 15% hold off on entrepreneurial ventures until their housing situation is stable.

This shift reflects the evolving perception among younger generations regarding adulthood milestones, with 84% of Gen Z individuals (ages 18-28) indicating they are postponing at least one life decision related to homeownership. Alarmingly, nearly one-third (29%) are deferring having children until they can secure their own home.

The Future of Homeownership

Another striking finding is that more than half (53%) of aspiring first-time homeowners do not expect to make their purchase until they are 40 years old or older. This raises concerns about how life stages are shifting, potentially leading to delayed family formation and other critical milestones. Jason Waugh, President of Coldwell Banker Affiliates, emphasizes the fundamental role of homeownership in achieving personal and financial stability. He states that many people are restructuring their lives to attain homeownership, often making significant sacrifices.

Persistent Aspirations Amid Challenges

Despite the financial strains, the report suggests that the aspiration for homeownership among Americans remains unshakeable. In particular:

• - 56% of Americans believe homeownership embodies their personal definition of the American Dream, outpacing traditional milestones such as marriage (42%) or earning a degree (23%).
• - A staggering 85% affirm that owning a home continues to be a crucial element of the American Dream for most.
• - Among non-homeowners, 83% still harbor the ambition to buy a property in the future, highlighting a strong desire, particularly among Gen Z (97%) and Millennials (93%).

Creative Solutions to Affordability

In response to these obstacles, many hopeful homeowners are considering creative approaches to achieve their property goals. Notable strategies include:

• - Taking On Side Jobs: 42% are open to increasing their income through secondary employment.
• - Adjusting Expectations: 35% are willing to settle for smaller or fixer-upper homes to make their dream a reality.
• - Co-Buying with Family or Friends: 36% of respondents have considered co-buying to reduce financial burdens, with support being especially prominent among Gen Z (63%) and Millennials (49%).
• - Living with Parents: Many are moving back in with parents to save for their first home, with 19% of Gen Z and 14% of Millennials choosing this route.

Hope for the Future

Looking ahead, optimism abounds among aspiring homeowners, with nearly two-thirds of those currently renting (63%) expressing a desire to buy within the next five years. This figure rises to 70% for Gen Z and 72% for Millennials, suggesting a persistent belief in the possibility of homeownership despite the challenges faced today.

The Coldwell Banker 2025 American Dream Report not only highlights the barriers to homeownership but also reflects the broader implications of these challenges on society and individual aspirations. As homeownership continues to symbolize stability and success, the industry must recognize its role in navigating this complex marketplace to fulfill the dreams of many seeking a place to call their own. For more information on this report and insights into the evolving American Dream, visit The Blue Matter blog.