Young Americans are increasingly delaying homeownership and moving back in with their parents amid soaring housing costs and high mortgage rates.
According to Realtor.com, a typical U.S. household now needs to spend 44.6% of its income to afford a median-priced home, far exceeding the recommended 30% threshold. Real estate expert Mauricio Umansky says the dream of owning a home—building equity and paying off a mortgage—is taking longer to achieve. He notes rising rates and prices are pushing young adults toward renting. More are staying with parents, giving them a chance to save, and parents are increasingly offering flexibility in living arrangements.
“At the end of the day, the American dream is to own real estate, build equity, pay off your mortgage and have a house,” Umansky said. “The younger generation is really not able to own homes. Again, I’m using the word affordability, but it’s a real affordability issue.”
Realtor.com economist Jake Krimmel notes that three affordability drivers—prices, interest rates, and income—are all stuck with “little to no movement.” Despite a 31.5% increase in supply, prices remain high, and 30-year mortgage rates hover at about 6.77%, with no imminent cuts expected. Krimmel adds that low consumer confidence means few expect income or purchasing power to grow soon, further hampering prospects for homeownership. Still, solutions exist: building more affordable homes and raising incomes could ease the burden, he says.
The shift isn’t just economic—it’s cultural. Returning home offers financial breathing room and a recalibration of independence for young adults. It reflects a broader reset of the American Dream, as renting and multigenerational living become more the norm than the exception.
