The American Dream is Dead: Real Estate Agent Explains Why You Need to Make $120K/year to Buy a Home in the US

The American Dream of owning a home and living a comfortable middle-class life seems to be slipping away for many young adults, according to Florida real estate agent Freddie Smith. Smith claims that in today’s economy, people need to make at least $120,000 a year to afford a typical middle-class lifestyle and purchase a home in the United States. He points to three main reasons why the old American dream is dead for many young Americans today.

Firstly, Smith highlights the skyrocketing costs of housing as a major barrier to achieving the American dream. With the average home price in the U.S. now exceeding $400,000, many Americans are finding it increasingly difficult to afford homeownership. This leads to more people renting instead of building wealth through property ownership, with half of all renters classified as “cost-burdened,” paying more than 30% of their income on rent and utilities.

Secondly, Smith points to the burden of student debt as another major obstacle for young adults. With more than 43 million Americans owing a total of $1.73 trillion in student loans, many are saddled with debt that hinders their ability to achieve a middle-class lifestyle. Smith describes millennials as the “pinched generation” who are struggling to make ends meet due to the mounting costs of a college education.

Lastly, Smith emphasizes the rising costs of child care as a significant challenge for millennials and older Gen Z adults. With a large percentage of parents spending a significant portion of their household income on daycare, the financial burden of raising children is becoming increasingly unsustainable. Smith notes that when factoring in rent, daycare expenses, and student loan payments, many young adults need to earn at least $100,000 a year just to cover these basic costs.

In light of these challenges, Smith believes that the old American dream of achieving a middle-class lifestyle through homeownership is now out of reach for many young Americans. As the gap between wages and the cost of living continues to widen, it remains to be seen how future generations will navigate these financial hurdles and pursue their own version of the American dream.