Emily Craig faced a tough year in 2023, remaining unemployed for a significant portion. Her benefits expired just before the holiday season.

“I was having a really hard time,” Craig, 34, from Woodstock, Virginia, shared. “It takes a toll on your mental well-being and social life. You can hardly afford to go out and enjoy anything. It’s disheartening.”

However, in December 2023, a ray of hope appeared. A job she had applied for and been turned down was reopened. She seized the opportunity, and this time, she landed the position as a recruiter at a company she describes as having an “amazing” culture. A few months later, another piece of good luck fell into her lap when she started contemplating homeownership just as the owner of a charming 126-year-old house decided to sell.

“My realtor said if I didn’t buy it, she would!” Craig told YSL News.

For Craig, deciding to buy a home was not simple. It represented the ability to claim something as her own, knowing that any improvements made to the house would benefit her directly, not a landlord. “It’s also a fantastic investment opportunity, and it allows me to establish roots in a community I truly love,” she explained.

However, across the U.S., the dream of homeownership — establishing roots, putting in some effort, and seeing wealth accumulate — is at risk. The housing market is extremely competitive, with home sales in 2023 hitting a record low not seen in 30 years. A decade of underbuilding following the subprime mortgage crisis, combined with strict local zoning laws, tariffs on construction materials, and other factors, have all contributed to this situation.

The challenge extends beyond just buying homes. Recent studies confirm what many Americans have felt: high renting costs make it almost impossible to save for a down payment or cover closing costs.

Given the many obstacles facing individuals like Emily Craig, her experience seems exceptional, if not unattainable. Nevertheless, housing experts indicate that the worsening situation may prompt action from Washington.

“The housing affordability crisis has far-reaching implications for families,” stated Shaun Donovan, CEO and president of Enterprise Community Partners, who previously served as the Secretary of Housing and Urban Development under President Obama.

“I have never witnessed such a widespread impact in my three decades in this field. What makes this situation different is the geographical scope; it affects areas from Idaho to Montana to rural New Mexico and the Northwest. Consequently, there is now a significant political urgency around housing that has not existed at this level in the past.”

Steering clear of costly regions

While some young Americans like Craig manage to find opportunities, others are abandoning the pursuit of homeownership. Mason Dorrian, 24, a recent graduate with a master’s degree in accounting from Ohio State University, has returned to live with his parents in Columbus, Ohio, while job-hunting.

As someone who works with numbers, Dorrian understands the financial security that comes with owning a home, but he values the chance to pursue new opportunities in his current life phase and doesn’t feel rushed to settle down. Still, even typical early steps his parents took feel out of reach for him.

“My mom had an internship in New York City, and years ago, one could consider a job and say, ‘I’d love to give this a shot for a while.’ But nowadays, there are places I just haven’t even considered looking into,” Dorrian mentioned.

“New York seems like an amazing place, and I have friends who moved there for work, but it feels impossible to live the kind of life I want with the high living costs,” he added. “It’s evident that this trend influences where my peers decide to relocate.”

The federal government plays a crucial role in facilitating homeownership in the U.S. Emily Craig was fortunate to obtain a mortgage through the U.S. Department of Agriculture, which provides loans in specific rural locations throughout the country. In recent years, entities like Fannie Mae and Freddie Mac have financed about 40% of all new mortgages, while the Federal Housing Administration insures an additional 25%.

Washington’s influence stretches across the entire housing landscape. For example, the Department of Housing and Urban Development invests billions annually to support state and local governments in creating affordable rental housing via the Low Income Housing Tax Credit. Additionally, Freddie Mac is active in funding multifamily developments; in the third quarter of 2024, they financed 131,000 rental units, two-thirds of which were affordable for low-income families, based on their financial reports.

Industry experts recognize a continuum of requirements and potential solutions.

“I believe that for the majority of people, homeownership remains the goal,” noted Ted Tozer, a nonresident fellow at the Urban Institute’s Housing Finance Policy Center. Tozer previously led Ginnie Mae, an agency within HUD that guarantees mortgages issued through the Federal Housing Administration, USDA, and other programs during the Obama administration.

“There are many individuals who, for various reasons, prefer to rent,” Tozer shared with YSL News. “The government’s role should be to ensure that people have ample chances to explore their options.”

Housing was a topic during the presidential debates. In her plan, Vice President Kamala Harris proposed building 3 million new residential units and providing assistance for down payments. Meanwhile, President-elect Donald Trump’s campaign asserted that he would halt the entry of immigrants who do not have a permanent legal status, which he claims is contributing to rising housing costs. Some analysts informed YSL News that neither candidate adequately addressed housing concerns. Trump won the popular vote in an election where citizens emphasized the economy as a significant issue.

In November, Trump selected Scott Turner, a former NFL player and former head of the White House Opportunity and Revitalization Council during Trump’s term, to lead the Department of Housing and Urban Development (HUD). This council played a key role in initiating federal tax benefits for economically challenged areas, known as “Opportunity Zones.”

Tozer expressed that the new administration needs to tone down its “populist language” and take a more pragmatic approach. He warned that deporting immigrants, many of whom have been productive workers here for years and have families in the U.S., would severely impact the construction sector. “When I speak with builders, their primary issue isn’t a lack of buyers. It’s the inability to build homes quickly because they can’t hire enough workers.”

‘The dream postponed’ due to student loan debt

Nicole Robinson, 26, is a homeowner alongside her husband. Residing in Richmond, Virginia, she works for the local school district. Robinson believes that owning a home is still a component of the American dream, though with important qualifications.

“I feel it’s no longer achievable for so many people, leading them to give up on other aspirations,” she explained. Often, this means they can either afford children or a house, but not both. Robinson highlighted that it’s not solely the rising home prices that limit accessibility, but also the burden of student loan debt. She knows numerous individuals in their late 20s struggling with “tens of thousands” in debt.

“I hope the older generations who guide us toward the American dream can show some understanding and avoid imposing age-related milestones like owning a house and having kids,” Robinson told YSL News. “Some of us might only manage one of those or perhaps none. Pursuing the traditional American dream could be detrimental as we should adapt it to our current financial situations.”

As of earlier this year, the average total costs for mortgage payments, property taxes, and insurance was $2,201, as reported by Harvard’s Joint Center for Housing Studies. This marks a significant increase of $852 over the past three years, and JCHS suggests this is the highest rate observed since records began more than thirty years ago.

This situation indicates a “generational shift,” according to Brian Montgomery, who served as HUD deputy secretary during Trump’s first term and as FHA commissioner under various presidents. He also remarked on the stagnant sales of homes, primarily because existing homeowners are locked into low mortgage rates. “Those figures are quite alarming,” he noted.

When asked if homeownership can still represent the American dream, Montgomery replied, “I believe it can, but it’s a delayed dream for many families.”

Montgomery sees potential for Washington to assist the most at-risk populations with housing, not just low-income families but also the elderly. He suggests the federal government could support new approaches in housing construction, such as manufactured homes, and work on simplifying regulations.

However, he pointed out that one of the main challenges currently facing the market is the high interest rates that exclude first-time buyers and keep existing homeowners from moving. “There’s no straightforward solution to the homeownership issue at the moment,” Montgomery stated.

‘The dream is not dead’

Craig understands well that no quick fixes exist. She is proud of her accomplishments thus far and recognizes that owning a home is a lifelong commitment. As she puts it, “There truly is a light at the end of the tunnel; the hard work has only just begun. Believe me, I was at the house until 10:00 p.m. last night, removing 50-year-old contact paper from my kitchen shelves.”

Her journey encapsulates the American dream well: receiving support when she was in need, coupled with her own determination and hard work.

“I genuinely value the assistance I’ve received through government programs,” Craig remarked. “People who succeed often take full advantage of the available programs. It requires research, self-advocacy, and figuring out what works best for your unique circumstances. I don’t believe the dream is over.”