Even with homeownership increasingly out of reach for younger adults, many are putting off major life milestones to afford it.
Owning a home is still a key component of the American Dream, according to 85% of the 3,068 U.S. adults recently surveyed by Coldwell Banker.
When asked what the American Dream means to them personally, respondents ranked homeownership behind only financial security and personal freedom. Among the respondents:
67% say financial security63% say personal freedom56% say owning a home42% say getting married or having children39% say building a successful career or business23% say earning a college degree
The U.S. median home price has risen by 30% since 2020 to $410,800 according to U.S. Census data. The cost of a 20% down payment alone is roughly equal to the U.S. median household income of $83,730, per the U.S. Census.
Given those costs, it’s not surprising that would-be buyers are making sacrifices or holding off on major life decisions to save for a home purchase. Among the 885 aspiring first-time homebuyers surveyed:
18% are delaying marriage18% are delaying having children17% are putting off changing jobs or careers17% are putting off getting a pet16% are holding off on living independently
Despite these delayed milestones, just over half of aspiring first-time homeowners don’t expect to buy their first home until age 40 or later, the analysis reveals.
That aligns with the average age of 36 for first-time homebuyers, according to a Federal Reserve Bank of New York analysis of Equifax mortgage data.
“As a 35-year-old financial planner, I’m seeing more clients and friends delay other major life goals to prioritize buying a home. However, in today’s expensive environment, homeownership doesn’t always make sense in every situation,” says Nicole Sullivan, a certified financial planner in Illinois.
She advises potential buyers to make a list of life goals and focus on what matters most to them. Timeliness should be part of that decision-making.
“As we approach middle age, some goals, like having children or making key career moves, become time-sensitive,” she says. “Homeownership may feel urgent — and for some, it might be. However, it’s crucial to understand the tradeoffs you may need to make” before buying a home.
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