My dad's accomplishment of purchasing that North Hollywood home at 34 (the age of many millennials today), and holding onto it as a rental property, generating an excellent source of passive income over the years (more on rental properties later), would be considered an impressive feat in 2019's economy. Especially for an immigrant, who is likely to face their own set of financial accessibility challenges. It's become harder to achieve the American Dream, and here are just a few facts that caught my eye in the news recently to back that up:

According to a CNBC article from last summer, the percentage of millennials who were homeowners between the ages of 18 and 34 was 37%, about eight percentage points lower than Gen Xers (45.5%) and baby boomers (45%). The reasons why fewer millennials become homeowners include student loan debt, delays in marriage/starting a family and renting for longer in pricey cities, hindering their ability to save for a down payment.
A report released last month from ATTOM Data Solutions said median-priced homes were not affordable for average-wage workers in the first quarter of 2019 in 335 out of 473 (71%) counties that the company analyzed. Places where median-priced homes were deemed unaffordable (those "supposedly more desirable" spots) include the Los Angeles area, Phoenix, San Diego, Miami and Orange County, Calif. Median-priced homes were affordable in Q1 2019 for average-wage workers in cities including Chicago, Houston, Detroit, Philadelphia and Cleveland. Plus, ATTOM found that homes in 49% of U.S. markets are now less affordable than their historic averages.
This month, CBS News reported only six out of 10 millennials earn enough to be considered middle class, compared with seven out of 10 baby boomers at the same age, according to a report from the Organization for Economic Cooperation and Development. Middle class means earning between 75% and 200% of a nation's median income, which equals between $23,416 and $62,442 for one worker in the U.S., according to the OECD.

Out of my millennial peers, those I know who own homes generally fall into two groups: 1) Those who live somewhere in the country where home prices are low, and it makes more financial sense to buy there than rent, and 2) Those who live in one of the higher-priced markets, chose to put down roots there early (as opposed to experiencing life in multiple cities or traveling long-term, as I have), and received financial help from a partner and/or their parents. In other words, it's not attainable for everyone – most millennial homeowners encountered luck, either with their location or by having a close relationship with someone who was able to help.

Instant Insights /

American Dream Disclaimer: In Select Locations Only

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