The New American Dream

For many generations, the American Dream was defined as owning a home. When I speak with Millennials and Gen-Z today, they have a different definition.

They have different priorities that include:

1.     Career Flexibility – Working remotely, achieving financial independence, early retirement, sabbaticals, and changing careers are all more important to people today than ever before.

2.     Experiences over Material Goods – Surveys show that more people are prioritizing experiences that produce memories and meaningful connections over “stuff.”

3.     Debt Avoidance – Does it still make sense to take out $100k in student loans to go to college? Driving an old car for longer and cutting spending are two other ways that people are actively trying to avoid the debt trap.

In California, homeownership feels particularly out of reach:

1.     Sticker Shock – Sky high prices on all homes, including condos and starter homes. Coupled with high mortgage rates, affordability is currently at an all time low.

2.     Insurance – High homeowner insurance costs due to insurance companies pulling out of the CA market.

3.     Maintenance and Repair – Inflation has made the cost of labor and materials higher than ever before, increasing the cost for homeowners.

So how can people grow their wealth while renting? From 1980-2023, the U.S. housing market returned 8.6% while the S&P 500 returned 14%. Over long periods of time, the U.S. stock market has proven to be a great investment. Early to mid-career professionals should be maxing out their 401k ($23,500 limit in 2025), creating a budget, cutting unnecessary spending, and investing the savings into a diversified index fund.

If you would like to discuss how you can grow your wealth, click Book A Meeting.

Homeownership in California is looking grim…