A changing concept of the American Dream

By: Jenna Louie, Chief Innovation and Strategy Officer

The Changing Dream of Homeownership

A recent article in the New York Times explores the idea that the American Dream – defined for generations as “get a job, save up for a down payment, and achieve the fairy-tale ending of domestic bliss and monthly mortgage payments” – may be shifting radically among younger Americans.

Rising Housing Costs

As housing costs have soared (“according to Redfin, nearly one in 10 homes in the country were worth $1 million or more — a share that more than doubled since June 2019”), the “dream” of homeownership may not only be out of reach for many, but also out of consideration. Instead, the author suggests that “many young people are placing more value on community and family, growing their wealth in other ways, or spending more on everyday pleasures.”

Innovations in Housing Affordability

While our work at Ivory Innovations focuses on housing affordability – including creating more housing units to displace decades of undersupply that contributes to higher prices – we also focus on new ways that residents can generate wealth outside of the traditional homeownership model.

Renter Reward Programs

Organizations like Bilt Rewards (IP ‘23), Stake, and Pinata provide renter rewards, like loyalty programs, to renters for paying rent on-time. Bloom by Roots (an initiative of Roots Real Estate, IP ‘23) gives renters a financial incentive to be good renters by providing cash each quarter for renters to invest and earn from a portfolio of rental properties, including their own, provided they’ve been a good tenant.

Tenant Equity Initiatives

Proposition 123 in Colorado’s Tenant Equity Vehicle will create a system where landlords treat tenants like equity holders in the properties where they live. Beyond direct rewards, organizations like Esusu (IP ‘20) and Keep by Framework (IP ‘21) help renters build their credit scores and manage their financial health.

The Future of Housing

Whatever the future holds for this younger generation, there’s no question that we will need to continue to innovate in housing – if only to build enough housing units for the growing American population. As we build those homes, there are vast opportunities to decrease costs, increase energy efficiency and sustainability, and enable livable, diverse communities. Whether younger Americans choose to rent, own, or something in between – we’ll be pushing for better housing options every step of the way.