Home Ownership: Is the American Dream Fading Away?

In a recent report released by ATTOM, a leading curator of real estate data, it was revealed that home ownership has become slightly more affordable across the US in the third quarter, but it still remains an elusive dream for many average workers.

The study found that major home-ownership expenses consume around 34 percent of the national average wage, marking a minor improvement in affordability as home prices continue to level out and mortgage rates decline.

Historical affordability has also shown signs of improvement, albeit incrementally, while remaining in a state of weakness.

For many potential homeowners, the prospect of owning a home is still a daunting task, with the costs involved being substantial. Despite the reported decrease in expenses as a percentage of the national average wage, the reality is that owning a home is still unaffordable for many.

A closer analysis of the data reveals that while home prices have eased up, they remain relatively high compared to historical levels. Similarly, mortgage rates might have dropped, but they are still higher than they were before the pandemic.

In order to qualify for a mortgage and assuming a 20 percent down payment, homebuyers would have to allocate a substantial portion of their income towards expenses such as mortgage payments, property taxes, and insurance.

For some, the sacrifices involved in securing a mortgage make it seem like an unattainable goal, particularly for those with median incomes who are finding it increasingly difficult to balance the demands of modern life with the need for a place to call their own.

Despite these challenges, many remain hopeful that the affordability will continue to improve in the coming months and years.

For the moment, however, one thing is clear: home ownership in the US, despite being slightly more affordable, remains an elusive dream for much of the population.