A growing number of young adults are unable to purchase homes, jeopardizing long-term financial stability and increasing reliance on Social Security in retirement. The trend reflects systemic affordability challenges across the U.S. housing market.
- Median home prices in top U.S. markets exceed 10 times the median income for under-35s
- Young adults under 35 have a median net worth of $27,000, compared to $210,000 for those aged 55–64
- By 2050, 60% of retirees are expected to rely on Social Security for at least 70% of income
- Homeownership gap could reduce intergenerational wealth transfer and community investment
- Projected worker-to-beneficiary ratio for Social Security is declining, increasing program strain
- Policy discussions now include down payment assistance and zoning reforms to improve access
Millions of adults under the age of 35 are now priced out of homeownership, with median home prices in major urban markets exceeding 10 times the median annual income for this demographic. In cities like San Francisco, Seattle, and New York, the typical home buyer in this age group would need to allocate over 50% of their income toward mortgage payments, far beyond the recommended 30% threshold for housing affordability. This housing shortfall is reshaping retirement planning. Without the equity-building benefits of homeownership, younger households are accumulating less net wealth. Data shows that the median net worth of households under 35 is now approximately $27,000, compared to $210,000 for those aged 55 to 64—a gap that reflects decades of lost opportunity in asset accumulation. As a result, young adults are projected to rely on Social Security for a greater share of retirement income. Current projections indicate that by 2050, nearly 60% of retirees aged 65 and older will depend on Social Security for at least 70% of their annual income, up from 52% in 2020. This shift places additional strain on the program, especially as the worker-to-beneficiary ratio declines. The consequences extend beyond individual households. Lower homeownership rates among younger generations may reduce community investment, limit intergenerational wealth transfer, and contribute to long-term economic stagnation in housing markets. Policymakers and financial institutions are now evaluating reforms to address affordability, including expanded rental assistance, down payment support, and zoning policy adjustments.