BiggerPockets Daily Is the American Dream Dead?
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Jun 6, 2025 Homeownership for millennials and Gen Z is lagging, raising questions about the American Dream. The housing market shows a sharp drop in listings and buyer interest, contributing to an affordability crisis. Rising prices and economic challenges are reshaping homeownership dreams. Additionally, Florida’s market faces unique struggles with high insurance costs and oversupply, making it even tougher for younger generations to enter the housing scene. The future of homeownership appears uncertain as these trends unfold.
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Housing Market Slowing
- New home listings are sharply declining with weakening buyer demand due to record high costs and affordability challenges.
- Median home sale prices rise 1.2% annually, while mortgage rates near 7%, squeezing buyers and reducing offers per home.
Florida Housing Affordability Issues
- Florida's housing market cools due to soaring insurance costs and higher hurricane risks.
- A homeowner's monthly payment nearly doubled due to insurance hikes, discouraging buyers, especially retirees on fixed incomes.
Millennial Homeownership Lag
- Millennials have a lower homeownership rate (47%) compared to Gen X and Baby Boomers at similar ages.
- The Great Recession and shift to urban multifamily rentals made home buying slower for millennials and now Gen Z struggles due to affordability.