The American dream of owning a home is slipping away from many families, as high home prices and rising mortgage rates make it difficult for them to afford even modest homes. A recent report by the National Association of Realtors found that median first-time homebuyers are now 38 years old, significantly above historic norms.
Experts point to limited housing supply and stagnant wage growth as major drivers of this trend. “Wage growth hasn’t kept up with the increase in home prices and interest rates,” says Domonic Purviance, who studies housing at the Atlanta Fed. This has led many to conclude that renting is their only option.
The issue is not limited to California, where the Petersen family’s struggles are well-documented. With a median income of $156,700, they would need to spend 80% of their income on housing to afford a median-priced home, leaving them with little room for other expenses. Jenn Petersen, the family’s mother and chiropractor, says she’ll “always hold out a little bit of hope” that homeownership will be in her family’s future, but for now, renting is the way forward.
The high cost of housing has become a major concern across the US, with 70% of voters under age 45 saying they’re “very” concerned about the cost of housing in their community. Sociologist Brian McCabe says that while homeownership is still seen as an ideal, many are realizing it’s not for everyone and offers more flexibility to move and live in exciting neighborhoods.
One woman, Julieta Lopez, 63, from Boston, recently found success with government programs and secured a subsidized apartment after decades of struggling to afford a home. Her story highlights the need for affordable housing assistance programs like the one she benefited from, which have helped nearly 700 residents get their first homes since Mayor Michelle Wu took office in 2021.
As the American dream becomes increasingly out of reach, it’s time to rethink our priorities and consider what owning a home truly means.
Source: https://abcnews.go.com/Business/wireStory/home-prices-mortgage-rates-high-families-find-american-118340731