Young people are demoralized and turn to the promises of socialism. Although socialism is completely disconnected from reality, young Americans are frustrated, convincing that the American dream is out of reach. In a recent study, almost a third of the millennials and almost 40% of Gen Z said that they believe they will never have a house.
Although it wrongly identifies capitalism as the culprit for the ailments of favoritism and central planning, including monetary and tax policy that has increased the costs of living, their concerns are real and valid. While in the past periods have been with high interest rates with reasonable house prices, and periods with low interest rates and high house prices, potential home buyers can nowadays be fighting with both.
If a house is the physical embodiment of the American dream, it should not feel out of reach. Here are some suggestions to make the American dream feasible again.
Believe in American dream decreases in the midst of acid economic sentiments, finding polls
Lower mortgage interest due to more removal loans
It is estimated that less than a quarter of the mortgages in the US have been adopted. Many home buyers have financed or refinanced their houses during the 15-year-old low-interest bonanza of the Fed and therefore do not want to sell their homes and give up their low mortgage interest. This has hidden the housing market.
In addition, today’s mortgage interest rate, in combination with high housing costs, make the houses that are too expensive available.
The government must collaborate with the banks to accept more mortgages (of course, ensuring that the assuming party is creditworthy, and that perhaps limit houses that will be primary homes).
While banks generate considerable costs of loan original, the hidden market at the moment limits their business. If the removal of the loan came with a right of the first refusal for the credit institution to refinance the rest that is needed for the mortgage, this would be a win-win. Banks would increase the original and the blended rate would be lower for home buyers.
Moreover, taxpayers have helped the banks in recent decades to say the least, so it’s pretty honest, so getting some concessions on their side is quite fair.
Create incentives for smaller footprint housing
One of the reasons that housing is so expensive is that we have had square meters. Houses today are on average more than double the size they were in the 1950s. According to data from the US Census Bureau, new -build houses were an average of 983 square feet in the 1950s, 1,200 square foot in the 1960s, about 1500 square feet in the 1970s and today they are between 2,200 and 2,300 square feet, although the household size has shrunk today. Note that median data was comparable for the period.
It is a complicated issue. Why would a home builder choose to build a smaller house if he could make a greater profit for a greater profit for an incremental amount of extra work?
This is where tax stimuli, both locally and federal, can help builders to build smaller footprint homes that would also be more affordable, especially for young people.
Fix balance sheets by resolving the burden of the student loan
Even if a house is within the reach of the income of a potential homebuyer, if they are saddled with debts, making a house purchase is a non-starter.
The US government is the largest predatory lender in the country, who saddles teenagers and young adults with tens of thousands of dollars in debts and postponing their ability to make investments, while colleges and their managers are enriched. Get the government from student loans and therefore make colleges and universities the right education costs for the value that education offers, will clean up the personal balance sheets of young people and help the homeowner make it more achievable.
Address rising real estate tax and insurance
It is one thing to be able to afford to buy a house. It is quite something to pay the current basket costs. Real estate tax and insurance have become incredibly cumbersome. It has been reported that taxes and insurance are on average almost a third of the mortgage payments from a single family, and for 9% of homeowners of single -family homes, taxes and insurance policies include more than half of the mortgage payment.
There should be an attempt, even if they are made at the local level, to call these costs back, or fewer Americans will never be able to afford a house (not to mention the general questionable moral framework for real estate tax).
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Lights up on companies that buy single -family homes
This is an area that I wrote extensively in my last bestseller book, you will not have anything. Before 2010 there was in fact no institutional money that bought single -family homes. But in Q1 2025, almost 27% of the single -family homes purchased were purchased by investors, with part of it being institutional buyers.
Many of the institutionally supported companies convert single -family homes that they buy to rental properties that get those homes from the buyable offer and Americans rent a shadow of the American dream back.
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Although I hate the central planning and prefer free markets, there has been nothing free market about the benefits that these companies give the opportunity to get cheap capital and to enter and compete for single -family homes. Extra costs, taxes or restrictions, at least until the market is normalized, can be a good way to level the playing field for average Americans.
The housing problem can be temporary, because baby boomers eventually get older and will sell their houses. However, it is still worth coming up with solutions today, even if they have a realistic, feasible goal for hard -working Americans in the short term.
