T
he dream of homeownership is slipping further out of reach for many young adults in the US, with experts warning that a generation may be priced out of the American dream. Rising interest rates, inflated home prices, and stagnant wages are forcing people into lifelong renting, where building equity feels increasingly impossible. According to real estate investor Lori Greymont, "without strategic shifts, we're watching an entire generation get priced out of the American dream."

    Financial expert Dr. David Phelps notes that Gen Z is not lazy or entitled for complaining about housing costs; wages haven't kept up with inflation or rising home prices, and interest rates are making it even harder to afford a home. "The math doesn't work" for many young adults, he says, citing the median home price of $420,400 versus the average salary's ability to afford a home costing $110,928.

    The supply of homes affordable to young families on a median income has plummeted from 50% to just 15% in the last decade, as large institutional investors buy up more and more properties. This is forcing young families into renting in lower-quality neighborhoods, disrupting their children's education and increasing financial stress.

    Psychotherapist Jonathan Alpert says the housing affordability crisis takes a serious psychological toll on young adults, causing anxiety, frustration, and feelings of failure. Owning a home has long been tied to stability and success, so when it feels out of reach, it can lead to self-doubt and a sense of being "stuck" in life. Alpert remains hopeful that economic conditions will shift, opening up opportunities for young adults, but until then, resilience, adaptability, and a change in narrative around this topic are crucial for navigating these challenges.