Homeownership is increasingly out of reach for young people, yet many are putting off major life milestones in order to be able to afford it.
Homeownership remains an important part of the American Dream, according to 85% of 3,068 U.S. adults recently surveyed by Coldwell Banker.
When asked what the American Dream personally means to them, respondents prioritized homeownership based solely on financial security and personal freedom. Some of the respondents were:
67% said having financial security 63% said personal freedom 56% said owning a home 42% said getting married or having children 39% said building a successful career or business 23% said earning a college degree
The median home price in the U.S. has increased 30% since 2020 to $410,800, according to U.S. Census data. According to the U.S. Census, the cost of a 20% down payment alone is approximately equal to the median U.S. household income of $83,730.
Given these costs, it’s no surprise that prospective buyers are willing to make sacrifices or postpone important life decisions to buy a home. The survey included 885 first-time homebuyers.
18% are putting off getting married 18% are putting off having children 17% are putting off changing jobs or careers 17% are putting off getting a pet 16% are putting off living independently
Despite these delayed milestones, just over half of first-time homeowners expect to buy their first home after age 40, the analysis found.
That’s in line with the average age of first-time homebuyers, 36, according to a New York Fed analysis of Equifax mortgage data.
“As a 35-year-old financial planner, I see more and more clients and friends putting off other major life goals to prioritize homebuying. But in today’s expensive environment, homeownership doesn’t necessarily make sense in every situation,” says Nicole Sullivan, a certified financial planner in Illinois.
She advises potential buyers to make a list of their life goals and focus on what’s most important to them. Timeliness should be part of that decision-making.
“As you approach middle age, some goals become time-sensitive, such as having children or making important career moves,” she says. “Homeownership can feel urgent, and for some it may be. But before you buy a home, it’s important to understand the trade-offs that may be necessary.”
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