The American Dream is Not Dead: Why 85% of Americans Still Aspire to Homeownership

With fluctuating interest rates and tight inventory, the dominant narrative suggests everyday Americans are resigning themselves to a lifetime of renting.

But the data tells a completely different, overwhelmingly positive story.

In a comprehensive housing survey conducted by BestMoney, we asked over 1,000 Americans to get honest about their housing goals and financial priorities. The results are clear: the desire to own a home is as resilient as ever.

A staggering 85.6% of respondents still view homeownership as either their "Ultimate Goal" (59.4%) or a major "Strategic Goal" (26.3%).

Far from giving up, today's prospective buyers are getting smarter, more strategic, and more creative about how they claim their piece of the real estate market.

Why does the dream of owning a home persist despite market hurdles? Americans deeply understand the long-term wealth-building and lifestyle benefits of holding a deed. A mortgage is widely recognized a forced savings vehicle, not an endless debt.

When asked what brings them the most peace of mind about a 30-year mortgage, respondents pointed directly to wealth accumulation and security:

• Building Equity and Wealth (32.0%): Real estate remains the cornerstone of wealth generation. Every principal payment is a deposit into your own net worth. Data from the Federal Reserve's Survey of Consumer Finances show that the median net worth of a homeowner is nearly 40 times that of a renter ($396,200 vs. $10,400).
• The Pride of Permanent Ownership (28.0%): Beyond the numbers, laying down roots and customizing a home are powerful motivators that renters give up in exchange for flexibility.
• Locking in a Fixed Payment (26.9%): With rental costs surging nationwide, a 30-year fixed-rate mortgage serves as the ultimate financial shield against inflation.

How Inflation Rewards Owners and Punishes Renters

• Owners: With a 15- or 30-year fixed-rate mortgage, your monthly payment stays the same while inflation gradually makes it more affordable. A $1,000 payment today could feel like $554 in 20 years, assuming 3% annual inflation. Meanwhile, every mortgage payment builds equity, shifting gradually from mostly interest toward mostly principal.
• Renters: Rents generally rise annually to keep up with inflation and other housing cost increases. Unless you earn significantly more over time, those payments never feel easier on the wallet.

How a Mortgage Builds Wealth: A Real $345,000 Example

Market appreciation is a wealth multiplier, and I've lived it. In 2015, I bought a $211,000 fixer-upper with 3.5% down on an FHA loan, then spent about $100,000 renovating over six years. My husband did much of the work himself.

We sold in 2024 for $550,000, walking away with about $345,000 net. It was wild to see all that money in our bank account, and it was only possible because we bought instead of rented. We rolled nearly all the profits into a new-construction dream home in a nicer, safer area.

There's a persistent media myth that Millennials and Gen Z have abandoned homeownership for the flexibility of a nomadic lifestyle. Our data firmly busts this myth.

Only 14.4% of respondents prefer renting long-term to prioritize travel or other investments. The overwhelming majority want their own keys. Furthermore, seeing peers purchase homes doesn't breed resentment. Instead:

• 42.1% feel "inspired and hopeful" they can do it too.
• 31.4% are instantly "curious" about the mortgage rate or lender their peers found.

Many barriers keeping potential buyers on the sidelines are psychological—rooted in outdated myths. When asked about the biggest mortgage misconceptions, respondents highlighted three areas where education is needed:

• The 20% Down Payment Myth (31.8%): This is the most pervasive misconception. In reality, the median down payment for first-time buyers hovers between 6% and 9%. Conventional loans allow as little as 3% down, and FHA loans require just 3.5%. Some homebuyers even purchase a home with zero down.
• The Perfect Credit Myth (30.2%): A blemish on your credit does not disqualify you. FHA loans are designed for moderate credit, and many conventional programs offer competitive pricing for less-than-perfect scores.
• The Forever Rate Myth (19.2%): A mortgage is a living financial instrument. 21.6% of respondents noted that if rates dropped to 4.5% tomorrow, their first move would be to refinance for immediate savings.

From My Experience: We're glad we bought as soon as we had a 3.5% down payment. Waiting longer could have meant missing out on hundreds of thousands of dollars in market appreciation, getting priced out of the market, and having to save ever-increasing amounts to reach the 20% down "gold standard" as home prices climbed.

While the goal of homeownership hasn't changed, the strategies have. Today's buyers are leveraging specialized mortgage products to build equity from day one and adapt to current market conditions, rather than waiting for a turnkey home.

What "New American Dream" Strategies Are Buyers Embracing?

• Embracing the Fixer-Upper (45.8%): Nearly half are willing to buy a cheaper home needing renovations. Renovation loans (like the FHA 203(k)) allow buyers to roll purchase and repair costs into a single mortgage, with no maximum income limits to qualify.
• Downsizing the Dream (32.9%): Nearly a third are open to buying a condo or townhome to start building equity and stop renting immediately.
• Relocating for Affordability (28.6%): More than a quarter are willing to move to lower-cost cities or states to stretch their purchasing power.
• Co-Buying (25.9%): Over a quarter would take out a joint mortgage with a platonic friend or sibling to pool resources and qualify for a higher loan.

Pro Tip: Just know that co-borrowers are each liable for the full mortgage, not half. A legally binding agreement spelling out exit plans, payment splits, and what happens if someone wants out is essential before closing.

Before You Buy a Fixer-Upper, Read This

I tell any homebuyer considering a fixer-upper without renovation reserves to consider an FHA 203(k) or other renovation loan. For us, saving up and doing much of the work ourselves was slow and draining—emotionally, physically, and financially. Even after six years, we stopped with projects undone, and life kept happening along the way: a year on workers' comp after my husband's back surgery, major career changes for us both, a baby.

Bootstrapping renovations isn't for the faint of heart, so if you can finance the work instead, strongly consider it.

Homeownership remains a deeply valued milestone. If you're ready to transition from renter to owner, your best move is to focus on what you can control.

When asked what would make them feel most confident about taking out a mortgage, the top answer was knowing they'd compared multiple lenders to secure the absolute lowest rate (32.6%).

Getting the best mortgage is about preparation. By running the numbers with a home affordability calculator, shopping around, comparing rate tables, and exploring flexible loan options, you put yourself in the driver's seat. The American Dream belongs to strategic, informed buyers ready to make it their own.

This article is based on The New American Dream: Real Estate, Money, and Your Future Survey*, a proprietary consumer research study designed, hosted, and analyzed by BestMoney.com. Conducted online in July 2026, the survey gathered complete responses from 1,055 adults across the U.S., balanced across key demographics (age, geography, and income).*