Real Estate Column: The American Dream at 250

By Jeff Wiren, Principal Broker, Premiere Property Group, LLC for the Sherwood Sun

SHERWOOD, Ore. — As America celebrates its 250th birthday, I've been thinking about what the American Dream looks like today.

For many Americans, homeownership is the defining symbol of that dream. In fact, surveys consistently show that owning a home ranks higher than earning a college degree, having a successful career, or even being able to retire comfortably. For generations, a home has represented much more than four walls and a roof. It has provided families with the opportunity to build wealth, establish roots, and create a legacy that can be passed from one generation to the next.

Unfortunately, our nation's history hasn't been perfect. The opportunity to own property was not always equally available to every American, and it took centuries of progress, along with fair housing laws and continued enforcement, to move our country closer to the ideal that everyone deserves an equal opportunity to pursue the American Dream. While that work continues, the dream itself remains as meaningful today as it was 250 years ago.

When I picture the American Dream, I see a classic 1980s ranch home with big eaves, a large green lawn, a curved sidewalk, and an American flag hanging beside the front door. Maybe your picture is different, but I suspect most of us have an image in our minds that represents "making it."

Now take that image ... and set it aside.

For many first-time buyers today, that picture probably isn't where their journey begins.

Affordability has become one of the greatest challenges facing young buyers. In the 1970s and 1980s, the median home price was roughly three times the median household income. Today, it's closer to six times. That is a dramatic change, and it's understandable why many young people question whether homeownership is still within reach. Yet history reminds us of something important: becoming a homeowner has never been easy.

In America's earliest years, there were no 30-year mortgages. Families often paid cash for land, inherited property from relatives, or spent years saving enough money to build a modest home. Before long-term mortgages became common after World War II, many buyers needed down payments of 40-60% and financed the remaining balance with short-term loans that often required large balloon payments. Every generation has faced obstacles. The obstacles have simply changed.

Today's buyers are fortunate to have financing options that previous generations could hardly imagine, but they also face housing prices that have grown much faster than incomes. That means the path to homeownership may look different than it did for your parents or grandparents. 

A first home today may not be the house you've always imagined. It may be a condominium, a townhome, or a modest starter home. It may require living with family a little longer, driving an older car, delaying some purchases, or making sacrifices that previous generations also understood in their own way. That's okay. For most Americans, the first home has never been the destination — it has always been the beginning.

As we celebrate America's 250th birthday, let’s remember that the American Dream isn't defined by the size of the house we own, but by our willingness to work toward it, help others achieve it, and leave the next generation with even greater opportunity than we inherited ourselves.

If you ever want to talk about your American Dream, and how you can achieve it, I am always available. It’s one of my favorite conversations.