The vanishing dream of property ownership for young generations

For millennials and Gen Z, the prospect of owning property has become an increasingly distant dream. Whether it's the hope of purchasing a home, acquiring a small piece of farmland, or investing in an income-generating asset, many young adults find these goals slipping further out of reach with each passing year. Unlike our parents, the baby boomers and Gen X who were often able to build financial security through property ownership, today’s younger generations are grappling with a vastly different economic reality. Skyrocketing housing prices, stagnating wages, student debt burdens, and an ever-rising cost of living have created a financial landscape in which stability feels more like a privilege than a rite of passage. For many, the traditional markers of adulthood were owning a home, building wealth through assets, or achieving long-term financial security. Today, this seems more aspirational than attainable, and it’s reshaping what success looks like for an entire generation.

Many Baby Boomers and even early Gen Xers had a significantly easier path to property ownership. Back then: Jobs paid better relative to living costs. A single income could support a family, buy a house, and even afford occasional luxuries. Housing was cheaper. Property prices were a fraction of what they are today, even when adjusted for inflation. Pensions and job security existed. Many had stable careers with benefits that allowed long-term planning. Education was affordable. Student debt wasn’t the life-altering burden it is today. For them, buying a home wasn’t just a dream, it was the natural next step after getting a job. Many could even acquire additional properties for rental income or pass them down as inheritances.

Why are we struggling?

Fast forward to today, and the situation is drastically different. In today’s housing landscape, young people face unprecedented barriers to homeownership due to a complex mix of economic and social shifts. Property prices have soared to historic highs, far outpacing wage growth. In many urban centers, a modest home now sells for eight to ten times the average annual salary, more than double the affordability ratio seen in the 1970s and 80s, when homes typically cost just three to four times a yearly income. This dramatic inflation in housing prices has collided with stagnant wages, creating a widening affordability gap. Despite substantial gains in productivity and technological advancement, wages have largely plateaued. As a result, many young professionals are spending over half their income on rent, leaving little room for savings, investments, or unexpected expenses.

Compounding this financial strain is the burden of student debt. Unlike previous generations who could finance their education through part-time jobs, today’s students often graduate with tens of thousands in loans. This debt significantly delays their ability to save for a down payment, pushing the dream of homeownership further out of reach. At the same time, the rise of the gig economy has undermined traditional employment pathways. Full-time jobs with benefits are increasingly rare, replaced by freelance, contract, or part-time work that often lacks stability and predictability. This job insecurity not only impacts financial planning but also makes it more difficult to qualify for a mortgage under conventional lending criteria.

Moreover, an emerging “inheritance divide” is reshaping who can realistically enter the housing market. Young adults whose parents own property benefit from intergenerational wealth, whether through direct financial support or eventual inheritance. Meanwhile, those without family assets must rely solely on their income and personal savings, often requiring years of extreme frugality and sacrifice just to make a down payment. These dynamics have turned homeownership into a privilege rather than a milestone, fundamentally altering what it means to achieve financial security in the modern era.

The consequences of a property-less generation

If current trends in housing affordability persist, we risk entrenching a lasting societal divide, one that separates property owners from a growing class of permanent renters. For many young people, the dream of homeownership is slipping further out of reach, replaced by the reality of lifelong rent payments. Instead of building equity and long-term financial security, they are funneled into a cycle of paying landlords, unable to accumulate the wealth that previous generations achieved through real estate. This shift not only delays key milestones such as moving out, starting families, or investing in personal development, but also contributes to a broader social stagnation. Without the foundational asset of a home, young adults may find themselves excluded from financial systems that rely heavily on property ownership as a base for creditworthiness and stability.

At the same time, wealth inequality continues to deepen. As homeownership becomes increasingly concentrated in the hands of fewer individuals, those who bought earlier or have access to generational wealth, the gap between the asset-rich and the asset-poor widens. Real estate, long a primary driver of wealth accumulation, is becoming a privileged investment accessible only to those already well-positioned.

Building anyway – stability looks different now!

The dream of property ownership is slipping away for young people. Unlike their parents, younger generations face a financial system that wasn’t designed for us. Unless major economic and policy shifts occur, an entire generation may never know the stability and freedom that property ownership once provided. For those without family wealth, the message is clear: the rules have changed, and the game is much harder.

And yet, amid rising rents, gig work, and shrinking safety nets, young people are building anyway. You people are redefining stability: co-creating homes through community, finding purpose over possession, and choosing resilience in the face of scarcity. Garden plots in shared backyards, co-ops in repurposed warehouses, digital collectives spanning continents, these are today’s blueprints. The foundation may look different, but hope remains the same: a life with dignity, belonging, and a stake in the future. The question is no longer just whether society will adapt, but whether it will recognize and invest in the future already being imagined.