For decades, the ‘American Dream’ has symbolised the idea that anyone, regardless of background, can build a better life through hard work and determination.
But for many young Americans today, especially Generation Z, this dream feels more like a fading myth than a reachable goal.
As reported by Newsweek, a recent UCLA study found that 60% of Gen Z (those born between 1997 and 2012) believe the American Dream is unattainable, even though 86% still consider it desirable.
Another survey by Ipsos shows similar results, with 61% of young people saying they do not believe they will ever achieve it.
The reasons? Rising costs, stagnant wages, and growing debt. Gen Z is facing a financial environment that makes it increasingly difficult to achieve traditional life goals like homeownership, stable careers, and starting families.
Education is not the safety net it used to be
Education was once seen as the key to climbing the social ladder. But today, even a college degree does not guarantee job security or financial stability.
In fact, one-third of long-term unemployed Americans are now college graduates, up from one-fifth a decade ago.
At the same time, 44% of Gen Z adults, about 13.1 million people, are carrying student loan debt. High tuition costs and the burden of repayment often cancel out the financial benefits a degree might offer.
Owning a home is not easy
Owning a home is a major part of the traditional American Dream. But for young people, that goal is getting harder to reach.
A report by Realtor.com found that Americans now need to earn 70% more to afford a median-priced home compared to just a few years ago.
First-time homebuyers have dropped to one-third of what they were 20 years ago, according to the National Association of Realtors.
While some data shows homeownership among young adults has not fallen as far as expected, high interest rates and prices remain major barriers.
Even those who do manage to buy homes often rely on financial help from their parents, which challenges the idea of individual success through personal effort, a core part of the American Dream.
It is not just housing. The overall price tag for achieving the American Dream has climbed to $5 million over a lifetime. This includes costs for education, housing, healthcare, raising children, and saving for retirement.
Meanwhile, financial instability is common among young adults. A survey by the Gen Z-focused financial app Step found that 41% run out of money every month, and only 22% say they feel financially stable.
Given the high costs and economic challenges, many in Gen Z are rethinking what the American Dream means to them. Instead of chasing the traditional path of college, marriage, kids, and a house, more young people are focusing on flexibility, experiences, and work-life balance.
Renting rather than owning, delaying or skipping marriage and children, and building careers through side hustles or freelancing are becoming more common. While some of this shift reflects changing values, much of it seems to be a realistic response to economic pressure.
Not just a Gen Z problem
While Gen Z may be feeling the crunch most sharply, this is not just their issue. A recent Harvard CAPS/Harris Poll found that 38% of all Americans, across age groups, believe the American Dream is no longer achievable.
In fact, nearly as many people say their parents reached the Dream as believe they will themselves, 49% compared to 52%. This shows broader feeling of uncertainty and disappointment with the direction of the US economy and society.
The American Dream is not dead, but it is changing. For many, especially younger generations, the classic vision of success is no longer practical or even desirable.
With rising costs and economic instability, people are being forced to redefine what success means for them.