Most baby boomers have built their wealth on the backs of real estate, if no other way than by owning their own homes. So, it makes sense that a Realtor.com survey released today found that more than eight in ten (84%) see homeownership as an “integral part” of achieving the American Dream.
Accessing homeownership has never been more challenging than it is today for first-time homebuyers, given rapid increases in home prices, elevated mortgage rates, and skyrocketing insurance premiums. As a result, the average age of first-time homebuyers has climbed in recent years.
However, the average age of all home buyers has risen, too, reaching an all-time high in 2024, according to the National Association of Realtors (NAR)’s latest Profile of Buyers and Seller. The median age of buyers was 56 years, and the typical repeat buyer was 61.
Marking a generational shift in consumer priorities, the Realtor.com study found that fewer among the younger generations see owning their own homes as a central aspect of achieving the American Dream. The share who do declines the younger the respondents were.
Indeed, 74% of Gen Xers, 69% of Millennials, and 67% of Gen Z respondents feel that homeownership is the American way. Realtor.com is NAR’s official website.
Nevertheless, the research also found that the desire to own a home is still strong, particularly with Millennials and GenZers. Only 59% of the Boomers identified ownership as a “life goal,” likely because they are already owners or because they have moved back down the ladder to renting.
Despite mortgage rates hovering around 7% and home prices continuing to march higher, the majority of the 2,201 adults sampled in an on-line poll in November believe homeownership is attainable.
Here again, boomers are the most confident they have the ability to purchase a place. However, in what pollsters describe as something of a surprise at 57%, Millennials are the next most likely group of buyers to say they can make it to the homeownership finish line, followed by GenXers at 55% and GenZers at 54%.
“Home — and land — ownership has been a part of the American Dream for generations,” Laura Eddy, vice president of Research and Insights at Realtor.com, said in a statement. “While current conditions around affordability and the availability of homes make ownership more challenging, many Americans still see the ideal of having a home belongs to them.”
Younger generations are more inclined than their seniors to believe owning, as opposed to renting, is a necessary part of creating riches, if not necessarily achieving the "American Dream." At 53% and 52%, respectively, Millennials and GenZers are most likely to see ownership as necessary to build their long-term fortunes, while less than half of GenXers (48%) and Boomers (45%) feel the same way.
Of the 2,201 people who took part in the November survey, 66% of the Boomers were owners, as were 54% of the GenXer respondents, 43% of the Millennials, and 33% of the GenZers.
