Why the American Dream Is Still On Hold
A survey looked at what's behind the persistent lag in homeownership.
Nearly half of the country’s moderate-income renters earn more than their parents did at the same age. Yet, apartment owners need not worry they’re going to lose those renters to the ranks of home owners, at least not for a while, according to a survey by Neighbors Bank.
The 1,011 renters polled had incomes of $40,000 to $125,000, capturing those between roughly 60 percent and 120 percent of national area median income. Many of them haven’t given up their own perceership aspirations, but they’ve put that goal on the back burner, the study found.
READ ALSO: Why Some Shop Rentals, Houses at the Same Time
Nearly one in four have yet to start saving for a house or have stopped saving. And more than two in three wouldn’t buy a home this year, even if a relative covered half their down payment.
About one in three still consider owning a home a core part of their American Dream. But while almost two in five said it remains a goal, it is less important than it used to be. The rest have moved on, either partially or fully: Sixteen percent replaced home ownership with other life goals, 6 percent never considered it a goal and 5 percent have given up on it entirely.
Women were more likely than men to have stepped back from owning the roof over their heads. Nearly three of every 10 women had stopped saving for a home or never started, compared with 16 percent of men. And more middle-income women (61 percent) than men (49 percent) said the dream of home ownership feels out of reach for people like them.
Generations also told different stories. Gen Z renters reported the most optimism overall, but were stretching toward the most competing goals at once. More than four in five Gen Zers said they’re likely to own a home in their lifetime, the highest of any generation. But one in four has yet to start saving for a down payment, the highest of any generation.
Those Gen Z renters who are saving for a house also are saving for travel (48 percent), a major purchase (33 percent), starting a family (27 percent) and furthering their educations (25 percent).
Of course, many renters simply cannot afford to buy right now, not with prices still increasing and mortgage rates expected to remain in the mid-6 percent range throughout the year and possibly beyond. But many also believe the age-old misconceptions about needing a 20 percent down payment and a super high credit score to qualify for financing.
“The numbers middle-income renters carry around in their heads have less to do with what’s required to qualify for Federal Housing Administration loans and more to do with rules of thumb that have hardened over a generation,” said Ashley Harris, director of home buyer education at Neighbors Bank.
Those mistaken beliefs are delaying time lines or stretching them out indefinitely, the survey found.
Extended timelines
A third of the renters queried said they’re at least six years away from buying a home, or believe they never will be. Nearly two in five Gen Zers said the same—the highest of any generation. More than one in four respondents said they felt further from buying today than they did three years ago, climbing to one in three among those earning $50,000 to $74,000 and among Gen Xers.
One in five said they still need to save more on their own, 14 percent said home prices in their area are still too high and 13 percent said their income or job stability isn’t there yet.
But one in 10 Gen Z renters cited lifestyle reasons, such as not being ready to settle down or planning to move, as the biggest barrier, nearly double the overall rate of 7 percent.
Please note: To become a Viewpoint writer, reach out to Therese Fitzgerald at therese.fitzgerald@cpe-mhn.com. All Viewpoints are copyright of Multi-Housing News 2026. We do not accept AI-written content.
