- While over half of Americans (54%) believe the “American Dream” is attainable today, optimism for reaching it is lowest among Gen Z (44%) yet highest among Millennials (61%).
- Nearly one in four homeowners (23%) regret buying their home, jumping to 38% among Millennials, compared to just 4% of Boomers+, with the primary reason being they underestimated the ongoing costs of ownership (25%).
- 40% of Millennial homeowners say they have delayed or changed other life goals because of housing costs
Owning a home has long been a cornerstone of the “American Dream.” But as prices soar and affordability wanes, that dream is being rewritten.
Amid the increasing cost of living, sky-high debt, and economic uncertainty, Americans are adopting strategies to stretch their dollars, maintain financial stability and create their own version of the American Dream. According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma of 1,000+ U.S. adults ages 18 and older, 44% of Americans surveyed have significantly cut down on non-essential spending. Additionally:
- 30% are working more hours to keep up with everyday costs
- 27% are aggressively saving or investing
- 20% have taken on a second job or side gig
- 14% are delaying major life milestones like marriage, having children or making large purchases
Despite financial headwinds, most Americans still believe in the “American Dream,” just not the same way older generations did. When asked what it means to them today:
- 68% said having stability and security
- 57% said achieving financial independence or becoming debt-free
- 53% still view owning a home as central to the dream
- 42% said building long-term wealth
- 35% said being able to travel or experience new things
While 54% of Americans say the dream is attainable, optimism varies sharply by generation. Only 44% of Gen Z believe it’s within reach, compared to 61% of Millennials, who represent the most hopeful group.
The changing face of homeownership
While homeownership remains a symbol of the American Dream for many, how and when people get there is changing:
- Just 6% of homeowners bought their homes within the past year, while 43% purchased more than a decade ago.
- While 45% of homeowners purchased their homes independently, an equal percentage bought with a romantic partner or spouse.
- 59% of Millennials purchased their home on their own
For many, buying a home is no longer the traditional solo pursuit. Among those surveyed who co-purchased property, nearly half (48%) did so to live with a specific person such as a partner, sibling or friend and 14% bought together to make homeownership more affordable. Other reasons include companionship and emotional support (10%), to share maintenance or household responsibilities (8%), and to qualify for a larger mortgage (7%).
Co-buying a home with a romantic partner, friend or family member can open the door to exciting opportunities but it can also be complicated. While 62% of those who purchased their home with another person have not considered buying out their co-owner, not everyone’s experience has been seamless. Among those who did, 26% said it was a smooth process, but another 10% said that it has been challenging.
The price of stability
For many homeowners, the dream of owning a home is colliding with the realities (and cost) of maintaining one. Nearly 1 in 4 homeowners (23%) say they’ve experienced buyer’s remorse,
including 38% of millennials compared to just 4% of Boomers+. The top reason? Underestimating the ongoing costs such as maintenance and property taxes (25%), followed by changes in financial situation (17%) and buying too quickly in a competitive market (15%).
The impact of housing costs doesn’t stop at the front door. 40% of Millennials have delayed or changed other life goals due to housing expenses. In fact, 24% of Gen Z are staying in a job they don’t like because of concerns about housing costs and the economy. And another 24% of Millennials have put off pursuing work they are passionate about in favor of financial stability.
What’s holding renters back?
While current homeowners navigate the costs of ownership, non-homeowners face their own set of hurdles. For many, affordability remains the biggest barrier.
- Nearly a third (29%) say high home prices are the main reason they haven’t bought a home, increasing to 35% of Gen Z.
- 21% have insufficient savings for a down payment.
- Credit challenges also play a role, with 11% saying issues with their credit score or mortgage approval are holding them back.
Debt continues to weigh heavily on younger generations. In fact, according to recent Credit Karma member data, Gen Z continues to experience the largest increase in credit card debt, with average balances up 8.5%. It’s no surprise that one in ten Gen Z adults say student loans or other forms of debt are preventing them from taking the next step toward buying a home.
Even so, many remain hopeful. Among homeowners who purchased seven or more years ago, 45% say their financial situation has improved since 2019, when interest rates were at historic lows.
“For Americans navigating a complex economy, the dream is evolving, not disappearing,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma.“Whether it’s cutting back, saving smarter, or sharing housing costs, people are finding new ways to make stability attainable. Treat financial stability as something you build intentionally. Start by tracking where your money is going, automate your savings when you can, and focus on paying down high-interest debt. If homeownership is part of your dream, plan for the long haul, beyond just the down payment. The American Dream isn’t one-size-fits-all anymore, it’s increasingly personal.”
Methodology
This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma on October 28, 2025, to October 30, 2025, among 1,017 adults ages 18 and older.