Is the American Dream of Homeownership Dead?

Real estate executive Ryan Serhant has questioned the traditional notion of homeownership as the quintessential American Dream, suggesting it may have originated as a bank marketing tactic. His perspective emerges as the U.S. housing market presents significant challenges.

Home prices have seen a dramatic increase, exceeding 40% since the pandemic began. Coupled with persistently high mortgage rates, this has made purchasing a home difficult. The average age of a first-time home buyer reached a record 40 in 2025, highlighting generational struggles.

The historical context reveals that while mortgages have existed since early America, modern systems evolved from federal government initiatives during the Great Depression. Programs like those established by President Franklin D. Roosevelt aimed to provide relief and stabilize the housing market.

Federal Housing Administration policies in the 1930s made homeownership more accessible by reducing down payments and introducing longer loan terms. Post-World War II, the GI Bill further boosted ownership rates, particularly among veterans, cementing real estate's role in wealth building.

However, the 2008 financial crisis marked a turning point, shattering the illusion of guaranteed prosperity through homeownership for many. Stringent lending standards and a subsequent shortage of affordable inventory continue to impact aspiring buyers.

Experts like JL Collins suggest that for those prioritizing financial independence at a young age, delaying homeownership might be a pragmatic choice. He argues that the hidden costs associated with owning a home, beyond mortgage payments, can significantly inflate living expenses and potentially become a financial burden.