Young Americans today face big challenges in building wealth compared to their parents. Rising student debt, flat wages, and higher living costs make it hard to buy homes and grow assets. Only about 40% of people aged 25-34 own homes today, while 60% rent.
This is the lowest homeownership rate on record for this age group. Owning a home helps people build wealth over time through equity. Despite these challenges, most young people still see homeownership as a key part of the American Dream.
A 2022 survey found that nearly three-quarters of people think owning a home is the best way to measure success in America. This shows how economic conditions have changed between generations, making it harder for young people to achieve the same financial milestones their parents did.