<h2>Welcome to the Millennial Squeeze</h2>
<p>Millennials—those born between 1981 and 1996—were promised the American Dream. Go to college, get a job, buy a home, retire comfortably. But here in 2025, that dream is hanging by a thread.</p>
<p>Home prices are out of reach. Wages haven't kept up with costs. Retirement feels like a fantasy. And while the rich get richer, millennials are drowning in debt, rising rents, and economic uncertainty.</p>
<p>This isn’t some fluke. It’s the result of a system that rewards wealth and punishes work—leaving millennials stuck in an economy designed for someone else’s success.</p>
<hr>
<h2>Locked Out of the Housing Market</h2>
<p>Millennials are falling behind on the #1 route to building wealth in America: homeownership.</p>
<ul>
<li>
<p>At <strong>age 30</strong>, just <strong>42% of millennials</strong> own homes, compared to <strong>48% of baby boomers</strong> at the same <a href="https://youngamericans.berkeley.edu/2024/01/breaking-down-the-data-how-has-homeownership-varied-across-generations">age</a>.</p>
</li>
<li>
<p>The <strong>national home price-to-income ratio</strong> was <strong>4.7 in 2024</strong>, up from 3.5 a decade ago. In high-cost states like California, it’s soared to <strong>8.4</strong>, and in Hawaii, a staggering <a href="https://www.visualcapitalist.com/mapped-home-price-to-income-ratio-by-state">9.1</a>.</p>
</li>
<li>
<p>The <strong>income needed to buy a median-priced home</strong> in the US is now over <strong>$115,000 per year</strong>—nearly double the current <strong>median household income of $67,500</strong>.</p>
</li>
</ul>
<p>For millennials earning average salaries and facing record student debt, buying a home is less "starter pack" and more "pipe dream".</p>
<h2><img src="https://financial-blog-content.s3.eu-west-1.amazonaws.com/public/images/us/us-article-millennials-the-generation-losing-the-wealth-war/1743787326099-output.png" alt="output.png"></h2>
<h2>Wages That Go Nowhere</h2>
<p>While costs have exploded, wages haven’t kept up.</p>
<ul>
<li>Since 2000, <strong>median home prices have risen 162%</strong>, but <strong>median incomes only rose 78%</strong>.</li>
<li>Adjusted for inflation, the <strong>typical US household</strong> has seen only a <strong>7% income increase</strong> since 2000—equivalent to <strong>just 0.3% per year</strong>.</li>
</ul>
<p>So even when millennials earn more on paper, it doesn’t stretch far enough to cover the soaring costs of housing, childcare, healthcare, and food.</p>
<hr>
<h2>Retirement is a Cruel Joke</h2>
<p>Forget beach houses and early retirement—many millennials are on track for working into their 70s.</p>
<ul>
<li>The <strong>average retirement account balance</strong> for millennials is about <strong>$12,000</strong>, compared to <strong>$40,000</strong> for Gen X at the same age.
<img src="https://financial-blog-content.s3.eu-west-1.amazonaws.com/public/images/ie/millennials-the-generation-losing-the-wealth-war/1743786725026-retirnement-savings-US.png" alt="retirement savings US"></li>
<li>Fewer millennials have access to employer pensions, and many juggle student loan repayments that eat into long-term savings.</li>
</ul>
<p>The retirement gap between generations is widening—and millennials are losing.</p>
<hr>
<h2>So... Where Did All the Money Go?</h2>
<p>It didn’t disappear. It just moved—<strong>upwards</strong>.</p>
<p>During COVID and the years that followed, trillions were pumped into financial markets. But the overwhelming majority of that wealth ended up with the ultra-rich, inflating the value of stocks, luxury property, and private equity.</p>
<p>Meanwhile, millennials got higher rent, pricier groceries, and tax bills that keep rising. <strong>The rich got assets. Millennials got austerity.</strong></p>
<hr>
<h2>The Passive Income Pyramid Scheme</h2>
<p>Here’s the hard truth: the economy isn’t broken. It’s doing exactly what it’s supposed to—<strong>make the rich richer</strong>.</p>
<ul>
<li>Wealthy individuals collect rent, dividends, and capital gains.</li>
<li>Millennials pay rent, service debt, and struggle to save.</li>
<li>The rich <em>own</em> the economy. Millennials <em>work</em> in it.</li>
</ul>
<p>This creates a vicious cycle. As inequality rises, the wealthy have more passive income to buy up even more assets—pricing younger Americans further out of wealth.</p>
<hr>
<h2>What Does This Mean for the Millennial Future?</h2>
<ul>
<li><strong>Homeownership rates will continue to fall</strong> unless radical housing reform is enacted.</li>
<li><strong>The wealth gap will widen</strong>, not shrink, unless wealth is taxed and redistributed.</li>
<li><strong>Retirement will become unachievable</strong> for anyone without inheritance or luck.</li>
<li><strong>Political power will skew older and wealthier</strong>, reinforcing policies that entrench inequality.</li>
</ul>
<p>We’re witnessing <strong>the slow dispossession of a generation</strong>.</p>
<hr>
<h2>It's Time to Get Angry</h2>
<p>Millennials have been told they’re broke because they order avocado toast or skip side hustles. Nonsense.</p>
<p>This is systemic theft. A rigged economy. A pyramid scheme where the base supports the top—and the top gets richer while blaming the rest.</p>
<p>It's time for millennials to stop internalising failure and start demanding fairness. The future isn’t just being lost—it’s being taken.</p>


## Welcome to the Millennial Squeeze

Millennials—those born between 1981 and 1996—were promised the American Dream. Go to college, get a job, buy a home, retire comfortably. But here in 2025, that dream is hanging by a thread.

Home prices are out of reach. Wages haven't kept up with costs. Retirement feels like a fantasy. And while the rich get richer, millennials are drowning in debt, rising rents, and economic uncertainty.

This isn’t some fluke. It’s the result of a system that rewards wealth and punishes work—leaving millennials stuck in an economy designed for someone else’s success.

---

## Locked Out of the Housing Market

Millennials are falling behind on the #1 route to building wealth in America: homeownership.

- At **age 30**, just **42% of millennials** own homes, compared to **48% of baby boomers** at the same [age](https://youngamericans.berkeley.edu/2024/01/breaking-down-the-data-how-has-homeownership-varied-across-generations).
- The **national home price-to-income ratio** was **4.7 in 2024**, up from 3.5 a decade ago. In high-cost states like California, it’s soared to **8.4**, and in Hawaii, a staggering [9.1](https://www.visualcapitalist.com/mapped-home-price-to-income-ratio-by-state).

- The **income needed to buy a median-priced home** in the US is now over **$115,000 per year**—nearly double the current **median household income of $67,500**.

For millennials earning average salaries and facing record student debt, buying a home is less "starter pack" and more "pipe dream".

![output.png](https://financial-blog-content.s3.eu-west-1.amazonaws.com/public/images/us/us-article-millennials-the-generation-losing-the-wealth-war/1743787326099-output.png)
---

## Wages That Go Nowhere

While costs have exploded, wages haven’t kept up.

- Since 2000, **median home prices have risen 162%**, but **median incomes only rose 78%**.
- Adjusted for inflation, the **typical US household** has seen only a **7% income increase** since 2000—equivalent to **just 0.3% per year**.

So even when millennials earn more on paper, it doesn’t stretch far enough to cover the soaring costs of housing, childcare, healthcare, and food.

---

## Retirement is a Cruel Joke

Forget beach houses and early retirement—many millennials are on track for working into their 70s.

- The **average retirement account balance** for millennials is about **$12,000**, compared to **$40,000** for Gen X at the same age.
![retirement savings US](https://financial-blog-content.s3.eu-west-1.amazonaws.com/public/images/ie/millennials-the-generation-losing-the-wealth-war/1743786725026-retirnement-savings-US.png)
- Fewer millennials have access to employer pensions, and many juggle student loan repayments that eat into long-term savings.

The retirement gap between generations is widening—and millennials are losing.

---

## So... Where Did All the Money Go?

It didn’t disappear. It just moved—**upwards**.

During COVID and the years that followed, trillions were pumped into financial markets. But the overwhelming majority of that wealth ended up with the ultra-rich, inflating the value of stocks, luxury property, and private equity.

Meanwhile, millennials got higher rent, pricier groceries, and tax bills that keep rising. **The rich got assets. Millennials got austerity.**

---

## The Passive Income Pyramid Scheme

Here’s the hard truth: the economy isn’t broken. It’s doing exactly what it’s supposed to—**make the rich richer**.

- Wealthy individuals collect rent, dividends, and capital gains.
- Millennials pay rent, service debt, and struggle to save.
- The rich *own* the economy. Millennials *work* in it.

This creates a vicious cycle. As inequality rises, the wealthy have more passive income to buy up even more assets—pricing younger Americans further out of wealth.

---

## What Does This Mean for the Millennial Future?

- **Homeownership rates will continue to fall** unless radical housing reform is enacted.
- **The wealth gap will widen**, not shrink, unless wealth is taxed and redistributed.
- **Retirement will become unachievable** for anyone without inheritance or luck.
- **Political power will skew older and wealthier**, reinforcing policies that entrench inequality.

We’re witnessing **the slow dispossession of a generation**.

---

## It's Time to Get Angry

Millennials have been told they’re broke because they order avocado toast or skip side hustles. Nonsense.

This is systemic theft. A rigged economy. A pyramid scheme where the base supports the top—and the top gets richer while blaming the rest.

It's time for millennials to stop internalising failure and start demanding fairness. The future isn’t just being lost—it’s being taken.

US Millennials: The Generation Losing the Wealth War

<p>From housing to groceries, American households are struggling under rising costs. But who's really to blame for this broken system? Let's take a closer look.</p>
<hr>
<p>We've all heard it: <em>Get a good job, save diligently, and you'll afford a home someday.</em> But more and more people in the U.S. are realising that this advice doesn't hold up anymore. Millennials and Gen Z workers, despite earning decent wages in many cases, find themselves locked out of homeownership.</p>
<blockquote>
<p><strong>The truth is:</strong> if you can't afford a home in the U.S. today, it's not because you're failing—it's because the system isn't designed to work for you.</p>
</blockquote>
<hr>
<h2>The Housing Crisis in Numbers</h2>
<p>The U.S. housing market is painfully unaffordable for most people, and the numbers back this up:</p>
<ul>
<li><strong>Median Home Prices</strong>: As of February 2025, the median existing-home price for all housing types was <strong>$398,400</strong>, a 3.8% increase from the previous year.</li>
<li><strong>Rents Skyrocket</strong>: The average rent in the U.S. reached <strong>$1,980</strong> in February 2025, reflecting a 3.5% year-over-year increase.</li>
<li><strong>Demand vs. Supply</strong>: The U.S. faces a housing shortage of approximately <strong>3.7 million units</strong>, with supply continually falling short of demand.</li>
</ul>
<p><img src="https://financial-blog-content.s3.eu-west-1.amazonaws.com/public/images/us/us-article-cant-afford-a-home-in-america-its-not-our-fault/1743625295114-US-median-home-price.png" alt="US-median-home-price.png"></p>
<p><a href="https://fred.stlouisfed.org/series/MSPUS#">Source</a></p>
<p>With these staggering statistics, one thing is clear: the dream of homeownership has been turned into a nightmare—one engineered by economic and political systems stacked in favour of a wealthy elite.</p>
<hr>
<h2>Why Homes Are Unaffordable</h2>
<p>At the heart of the U.S. housing crisis lies wealthy investors, speculative markets, and decades of inadequate policy. The recipe for unaffordable housing includes the following ingredients:</p>
<h3>1. Landlords and Institutional Investors Dominate the Market</h3>
<p>In the U.S., homes are increasingly treated as money-making investments rather than a basic human need. Institutional investors <a href="https://www.cotality.com/insights/articles/mom-and-pop-investors-shape-housing-market">dominate the market</a>, buying large chunks of housing stock to turn a profit through rent and rising property values. These corporate landlords drive up prices and leave aspiring buyers unable to compete.</p>
<p><img src="https://financial-blog-content.s3.eu-west-1.amazonaws.com/public/images/us/us-article-cant-afford-a-home-in-america-its-not-our-fault/1743626611651-US-affordabilityindex.jpg" alt="US-affordabilityindex.jpg"></p>
<h3>2. Wealth and Speculation Fuel Soaring Prices</h3>
<p>Wealth inequality amplifies the demand for assets like real estate, pricing everyday people out. Housing becomes not a place to live but a financial asset for the wealthy to grow their portfolios. As speculation takes over, housing prices spiral far beyond average income levels.</p>
<h3>3. Stagnant Wages Compound the Problem</h3>
<p>Even as house prices climb year after year, wage growth has failed to keep up. For younger people, saving for a deposit while also paying steep rent is next to impossible. Housing costs now consume a much larger share of income than they did for previous generations, leaving thousands trapped in a cycle of renting with no viable path to ownership.</p>
<h3>4. Limited Government Action</h3>
<p>Despite the glaring issues, policies in the U.S. have fallen short of fixing the crisis. Public housing projects are underfunded, and regulations to limit investor control or stabilise rent hikes have been insufficient. Without stronger intervention, the situation continues to worsen.</p>
<hr>
<h2>What This Means for Families in the U.S.</h2>
<p>The effects of unaffordable housing ripple far beyond homeownership. Here's what happens when a basic necessity is too expensive for most:</p>
<ul>
<li><strong>Financial Insecurity</strong>: Families unable to own homes struggle to save and plan for the future.</li>
<li><strong>Generational Inequality</strong>: Young American workers are at risk of never building the wealth older generations took for granted.</li>
<li><strong>Broken Communities</strong>: Expensive housing erodes communities as workers are forced to migrate further from cities or move abroad entirely.</li>
</ul>
<blockquote>
<p>This isn't just a personal issue. It's a systemic failure that leaves everyday people paying the price of policies and markets geared toward profit over people.</p>
</blockquote>
<hr>
<h2>What Can Be Done?</h2>
<p>The U.S. doesn't have to remain trapped in this cycle of unaffordable housing. Real change starts with addressing the root problem: economic inequality. Here are some solutions to rebalance the scales:</p>
<h3>1. Tax the Wealthy</h3>
<p>Implement progressive property taxes targeting large portfolios owned by institutional investors. This would discourage speculative buying and generate revenue to build affordable housing.</p>
<h3>2. Massively Expand Public Housing</h3>
<p>The government must invest substantially in affordable social housing projects. This would remove dependency on profit-driven private developers, ensuring supply grows in line with public needs.</p>
<h3>3. Close Investor Loopholes</h3>
<p>Introduce stronger restrictions on corporate landlords and limit large-scale purchases by institutional investors. This would stop wealthy groups from dominating the housing market.</p>
<h3>4. Rent Control and Tenant Protections</h3>
<p>Rent caps and stronger tenant rights laws would ensure families aren't displaced by arbitrary rent hikes, creating more balanced housing stability.</p>
<hr>
<h2>It's Not Our Fault</h2>
<p>If you're struggling to buy a home in the U.S., let this be clear: <strong>it is not our fault</strong>. The housing market has been hijacked by investment interests and a system designed to enrich the wealthy at the expense of everyone else.</p>
<p>But things can change. By pushing for bold policies, supporting progressive housing reforms, and demanding fairness in the market, ordinary people can reclaim access to affordable homes.</p>
<blockquote>
<p><strong>Housing is not—and should never be—a luxury.</strong></p>
</blockquote>
<p>It's time the U.S. made it a right for all.</p>
<p><strong>Let's work together to build a fair housing system, so everyone can call the U.S. home.</strong></p>


From housing to groceries, American households are struggling under rising costs. But who's really to blame for this broken system? Let's take a closer look.

---
We've all heard it: *Get a good job, save diligently, and you'll afford a home someday.* But more and more people in the U.S. are realising that this advice doesn't hold up anymore. Millennials and Gen Z workers, despite earning decent wages in many cases, find themselves locked out of homeownership.

> **The truth is:** if you can't afford a home in the U.S. today, it's not because you're failing—it's because the system isn't designed to work for you.

---

## The Housing Crisis in Numbers

The U.S. housing market is painfully unaffordable for most people, and the numbers back this up:

- **Median Home Prices**: As of February 2025, the median existing-home price for all housing types was **$398,400**, a 3.8% increase from the previous year.
- **Rents Skyrocket**: The average rent in the U.S. reached **$1,980** in February 2025, reflecting a 3.5% year-over-year increase.
- **Demand vs. Supply**: The U.S. faces a housing shortage of approximately **3.7 million units**, with supply continually falling short of demand.

![US-median-home-price.png](https://financial-blog-content.s3.eu-west-1.amazonaws.com/public/images/us/us-article-cant-afford-a-home-in-america-its-not-our-fault/1743625295114-US-median-home-price.png)

[Source](https://fred.stlouisfed.org/series/MSPUS#)

With these staggering statistics, one thing is clear: the dream of homeownership has been turned into a nightmare—one engineered by economic and political systems stacked in favour of a wealthy elite.

---

## Why Homes Are Unaffordable

At the heart of the U.S. housing crisis lies wealthy investors, speculative markets, and decades of inadequate policy. The recipe for unaffordable housing includes the following ingredients:

### 1. Landlords and Institutional Investors Dominate the Market

In the U.S., homes are increasingly treated as money-making investments rather than a basic human need. Institutional investors [dominate the market](https://www.cotality.com/insights/articles/mom-and-pop-investors-shape-housing-market), buying large chunks of housing stock to turn a profit through rent and rising property values. These corporate landlords drive up prices and leave aspiring buyers unable to compete.

![US-affordabilityindex.jpg](https://financial-blog-content.s3.eu-west-1.amazonaws.com/public/images/us/us-article-cant-afford-a-home-in-america-its-not-our-fault/1743626611651-US-affordabilityindex.jpg)

### 2. Wealth and Speculation Fuel Soaring Prices

Wealth inequality amplifies the demand for assets like real estate, pricing everyday people out. Housing becomes not a place to live but a financial asset for the wealthy to grow their portfolios. As speculation takes over, housing prices spiral far beyond average income levels.

### 3. Stagnant Wages Compound the Problem

Even as house prices climb year after year, wage growth has failed to keep up. For younger people, saving for a deposit while also paying steep rent is next to impossible. Housing costs now consume a much larger share of income than they did for previous generations, leaving thousands trapped in a cycle of renting with no viable path to ownership.

### 4. Limited Government Action

Despite the glaring issues, policies in the U.S. have fallen short of fixing the crisis. Public housing projects are underfunded, and regulations to limit investor control or stabilise rent hikes have been insufficient. Without stronger intervention, the situation continues to worsen.

---

## What This Means for Families in the U.S.

The effects of unaffordable housing ripple far beyond homeownership. Here's what happens when a basic necessity is too expensive for most:

- **Financial Insecurity**: Families unable to own homes struggle to save and plan for the future.
- **Generational Inequality**: Young American workers are at risk of never building the wealth older generations took for granted.
- **Broken Communities**: Expensive housing erodes communities as workers are forced to migrate further from cities or move abroad entirely.

> This isn't just a personal issue. It's a systemic failure that leaves everyday people paying the price of policies and markets geared toward profit over people.

---

## What Can Be Done?

The U.S. doesn't have to remain trapped in this cycle of unaffordable housing. Real change starts with addressing the root problem: economic inequality. Here are some solutions to rebalance the scales:

### 1. Tax the Wealthy

Implement progressive property taxes targeting large portfolios owned by institutional investors. This would discourage speculative buying and generate revenue to build affordable housing.

### 2. Massively Expand Public Housing

The government must invest substantially in affordable social housing projects. This would remove dependency on profit-driven private developers, ensuring supply grows in line with public needs.

### 3. Close Investor Loopholes

Introduce stronger restrictions on corporate landlords and limit large-scale purchases by institutional investors. This would stop wealthy groups from dominating the housing market.

### 4. Rent Control and Tenant Protections

Rent caps and stronger tenant rights laws would ensure families aren't displaced by arbitrary rent hikes, creating more balanced housing stability.

---

## It's Not Our Fault

If you're struggling to buy a home in the U.S., let this be clear: **it is not our fault**. The housing market has been hijacked by investment interests and a system designed to enrich the wealthy at the expense of everyone else.

But things can change. By pushing for bold policies, supporting progressive housing reforms, and demanding fairness in the market, ordinary people can reclaim access to affordable homes.

> **Housing is not—and should never be—a luxury.**

It's time the U.S. made it a right for all.

**Let's work together to build a fair housing system, so everyone can call the U.S. home.**

Cost of LivingUnited States

Housing & Property

US Millennials: The Generation Losing the Wealth War

Can't Afford a Home in America? It's Not Your Fault