Ask anyone what the ‘American Dream’ is and you’ll likely hear things about wealth, freedom, and the ability to live life on your own terms. And, certainly, at the heart of this, you’ll find the idea of home ownership. But is home ownership even a realistic option these days?

The Changing Face of the American Dream

In the past, buying a home was a practical goal for any average middle-class American. However, the current economic landscape tells a different story. Real estate prices have soared to unprecedented (some would say “insane”) heights, outpacing growth in wages (which have been very stagnant for the past couple of decades). For many, this imbalance has turned the dream of home ownership into an impossible goal.

Buying a house is no longer a matter of working hard enough and long enough to save up. Lately, saving up for three or four years for a house means missing out on a 20 to 25 percent increase in home prices. (So all of that progress you thought you were making by stacking dollar bills in the bank could mean you’re in even less of a position to buy a house.)

Interest rates have also climbed, adding another layer of complexity for prospective buyers. The cost of borrowing money is higher than it has been in years, which means higher monthly payments on mortgages. Interest rate increases alone mean the average person could see a mortgage payment that’s 30 to 50 percent higher than they were anticipating just a few years ago -- without even accounting for the increase in real estate values.

Then, on top of all of this, there’s the stagnant wage growth that we alluded to. Wages haven’t been increasing at nearly the rate they need to in order to keep pace with inflation (let alone surpass it).

“One study, in particular, shows a 12.6 percent increase in wages since 2006, but when you take inflation into account, those wages have actually dropped by 9.3 percent,” Professional Alternatives mentions. “In essence, this means that even though we’re making more, we can buy less.”

When you mix all these elements together, you end up with a deflating concoction that makes the thought of owning a home feel totally out of reach.

The Impact on Americans

What does this shift mean for the American Dream? For starters, it makes us reevaluate what it means to achieve this dream. If home ownership is no longer feasible for a large portion of the population, how do we redefine success and stability in America? The dream may need to adapt, focusing perhaps more on financial security in other forms rather than solely on owning a home.

On top of all this, the inaccessibility of home ownership isn’t just a financial issue -- it's a social one. It impacts family stability, community building, and even educational opportunities for future generations. (When people move frequently due to unstable rental situations, it can disrupt education, friendships, etc.)

Alternatives to Traditional Home Ownership

As traditional paths become less accessible, Americans are finding alternative ways to achieve stability. Some are choosing to invest in rental properties that can create cash flow, in the hopes that they’ll eventually be able to afford to live in the home on their own without the assistance of a rent check. Others are exploring co-housing communities -- meaning actually buying a house with someone else in order to split the costs, though this has unique challenges of its own.

Millions of Americans are totally giving up on real estate altogether, and are instead prioritizing investment in stocks or other assets over real estate. These alternatives might not fit the classic picture of the American Dream, but they at least offer other forms of financial security.

Legal Strategies for Maintaining Home Ownership

And then there’s a totally different issue for those who do become homeowners: Keeping your home. With high mortgage rates and overpriced homes, many people are doing whatever they can to squeeze into a property, despite limited financial resources. As a result, we’re starting to see foreclosure rates tick up.

When foreclosures increase, it’s a sign that people are in over their heads. And while it might seem like a good thing for those on the outside looking in -- a softening of the market, if you will -- most of these homes get gobbled up by big real estate investment firms who then set expensive rent rates and perpetuate the cycle that’s happening.

There are, however, options for those facing foreclosure. “Sometimes saving the house is as simple as getting the loan modified -- which most people don’t even realize is a possibility,” attorney Rowdy G. Williams points out. “But if you meet with a foreclosure lawyer early on, you’ll discover simple little fixes like this.”

For those who are trying to salvage their little piece of the American Dream, it can be helpful to know that options like this exist.

Moving Forward

As we look to the future, it's clear that while the vision of the American Dream may be shifting, the values that support it -- freedom, prosperity, and the pursuit of happiness -- don’t have to slip by the wayside, too. It's up to us to adapt and find new ways to achieve these goals within today’s context.

The question of whether home ownership is still a part of the American Dream is a complex one that would require thoughtful conversations with historians and sociologists. However, to say it’s dead wouldn’t be entirely true. There are still people making it work -- it just requires more work than it previously did.

What's essential is that we continue to seek solutions that allow as many Americans as possible to achieve their own version of this dream, whether it includes home ownership or other forms of growth and fulfillment.

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