Homeownership is no longer the lynchpin of the American dream

June is National Homeownership Month. Realtors, home builders, lenders and governmental officials have celebrated it since 2003, when former US president George W. Bush designated June a month to commemorate homeownership’s role in building wealth and creating strong and stable neighborhoods.

But given the economic conditions many Americans continue to face as a result of the 2007-2009 recession, the housing industry has little reason to celebrate homeownership at the moment.

Owning a home no longer plays the same role in the lives of Americans that it has in the past. And it is clear that many middle-income Americans cannot realistically aspire to become homeowners anytime soon.
Defining financial success

Until recently, Americans felt they had achieved financial success if they owned a home, could put their children through college, had secure and stable retirement income and had upward mobility. However, recent polls and surveys suggest that, for many Americans, homeownership is no longer a core component of the American Dream.

A recent survey conducted by the American Institute of CPAs found that most Americans are now more concerned about having enough money to retire comfortably than about becoming a homeowner. Homeownership was the top indicator of financial success for only 11% of the adults who were surveyed. More than twice as many (28%) felt that having enough money to retire comfortably was most important, and 23% put being able to give their children a debt-free college education at the top of the list.

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