Study Finds: Americans are grappling with tough decisions in the housing market as costs continue to rise in 2025.

A recent survey has shed light on the changing attitudes toward homeownership in America, revealing that one in three people no longer views owning a home as part of the traditional ‘American Dream.’ The study, conducted by IPX1031, a prominent 1031 Exchange company, highlighted the growing apprehension among Americans regarding the real estate landscape, as rising costs and evolving industry practices continue to reshape the housing market.

According to the survey of 1,002 respondents, almost half of Americans believe that purchasing a home in 2025 is unrealistic, signifying a significant departure from the conventional notion of the American Dream. With one-third of Americans no longer considering homeownership essential for achieving their aspirations, there appears to be a fundamental shift in attitudes toward property ownership.

Despite these challenges, the housing market remains active, with 51% of Americans indicating their intention to enter the market this year. However, nearly half of the respondents (47%) expressed concerns about their ability to afford a home purchase, with Millennials being the most affected group (51%), followed by Gen X (24%), Gen Z (18%), and Baby Boomers (7%).

Several key concerns have emerged as significant factors shaping the 2025 housing market, including rising home prices, interest rates, and tax rates. Current homeowners are feeling the impact of these changes, with 35% expressing a desire to sell but feeling trapped by their favorable interest rates, and another 34% resigned to staying in their current homes indefinitely due to rate concerns.

The real estate industry has also undergone significant shifts in commission structures following a federal lawsuit ruling in August 2024. The traditional 5-7% realtor commission structure is now negotiable, with sellers no longer mandated to cover fees for both parties. This change has sparked confusion in the market, with 25% of buyers planning to adhere to standard rates, 45% intending to negotiate commissions directly with their agents, and 9% being unaware of the new commission laws.

Generational disparities in home-buying intentions are apparent, with Gen Z taking the lead at 61%, followed by Millennials (52%), Gen X (46%), and Baby Boomers (43%). Family support plays a critical role in home purchases, with 40% of buyers expecting financial assistance from relatives, particularly among Millennials (47%) and Gen Z buyers (32%).

Buyer preferences reveal a strong inclination toward suburban areas (49%), followed by urban (28%) and rural (23%) settings. However, two-thirds of potential buyers are willing to compromise on location for the right property, with 38% open to compromising on the age or condition of the home. Primary motivators for purchasing include transitioning from renting to owning, the need for more space, and investment opportunities.

The survey highlights the diverse intentions of potential buyers, with 38% seeking their first home, 19% looking for second homes, and 12% pursuing investment properties. While homeownership remains the preferred choice for 90% of respondents, a minority expressed a preference for renting, citing benefits such as simplified maintenance, flexibility for relocation, and access to modern housing options.

In conclusion, the housing market in 2025 reflects a complex landscape characterized by changing attitudes, evolving preferences, and diverse buyer needs across different generations. As Americans navigate the challenges and opportunities presented by the evolving real estate industry, it is evident that the traditional concept of the ‘American Dream’ is undergoing a profound transformation, with homeownership no longer being viewed as a universal aspiration.