Young Americans are feeling the weight of unmet expectations. They are increasingly drawn to the idea of socialism, a system that seems disconnected from the realities of the marketplace. A recent survey revealed significant discontent, with about one-third of Millennials and nearly 40% of Gen Z believing they will never own a home. This frustration is not unfounded. Rising costs, driven by cronyism and misguided fiscal policies, have made the traditional American Dream feel unattainable.
In the past, the economic landscape fluctuated, with high interest rates sometimes coinciding with lower home prices. Today, potential homebuyers face a double bind of skyrocketing prices paired with high mortgage rates. For many, owning a home should symbolize the ideal of individual success, but for too many, it feels like a fading illusion.
Addressing this crisis requires a multi-faceted approach that could potentially restore faith in homeownership. One significant solution is to lower mortgage rates through the expansion of assumable loans. Currently, fewer than a quarter of mortgages in the U.S. are assumable. Borrowers who secured low rates during previous periods of low interest are reluctant to sell, further choking the housing market. If more mortgages were made assumable, and banks ensured the creditworthiness of buyers, both homeowners and financial institutions would benefit. Refinancing options could also create additional opportunities for new buyers to enter the market.
Another contributing factor to the housing affordability crisis is the phenomenon of oversized homes. The average size of new homes has expanded enormously since the 1950s, with figures soaring from about 983 square feet to over 2,200 today. This “square footage creep” leaves potential buyers with fewer affordable options. Encouraging builders to construct smaller homes through targeted tax incentives could help reverse this trend. Smaller homes would not only be more affordable but could also resonate with younger generations seeking to establish their independence.
Compounding the issue of housing affordability is the growing student loan debt that weighs heavily on young Americans. With the government acting as a predatory lender, many young adults find themselves burdened with substantial debts, making homeownership feel out of reach. Reforming student lending systems and ensuring that education costs align more closely with the value of what is learned could help young people reclaim their financial freedom.
Ongoing costs associated with homeownership also pose a significant challenge. Property taxes and insurance have surged to where they account for nearly a third of the average mortgage payment. For 9% of homeowners, these costs represent more than half of their mortgage expenses. Streamlining these costs at the local level could allow more families to take a step closer to purchasing their own homes rather than being locked out of the market.
An increasingly disturbing trend is the influx of corporations buying single-family homes. With nearly 27% of such homes purchased by investors in early 2025, families hoping to buy are often competing against institutional buyers with deep pockets. These entities convert homes into rental properties, further removing affordable options from the marketplace. While free-market principles should prevail, the current environment is anything but free, with large corporations wielding an outsized influence. Implementing new regulations or fees could help level the playing field for hardworking Americans looking to buy homes.
The housing dilemma, while pressing, may have temporary solutions. As the population ages and baby boomers sell their homes, inventory may increase. Nonetheless, it is crucial to pursue strategic changes now that enhance accessibility to homeownership. This way, the promise of the American Dream can still be within reach for future generations.
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