The Challenge of Homeownership for Young Americans

For many young people, the dream of having a garden, a picket fence, and a place in the neighborhood seems increasingly unattainable. Policymakers often view this primarily as an affordability issue—prices, interest rates, and down payments are critical. Yet, the underlying problem seems to stem more from familial structures, particularly the decline in marriage.

Last year, only 21% of home purchases were made by first-time buyers, marking the lowest figure on record. The median age of a first-time buyer has risen to 40, up significantly from 33 in 2021 and 29 back in 1981. Census statistics indicate that only about 35% of Americans aged 25 to 34 own homes now, a stark decrease of nearly 19 percentage points since 1980, even when mortgage rates were considerably higher.

“We’re treating the symptoms while ignoring the root causes,” as the saying goes.

While affordability issues do contribute to this downward trend, some recent analyses suggest that the more significant driving force lies in cultural changes, particularly the decline in marriage rates.

Scott Winship, a scholar with the American Enterprise Institute, analyzed census data, pointing out a study from the Institute for Family Studies. This research suggests that much of the decline in homeownership among young people is linked to the breakdown of marriages. Specifically, around 35% of all Americans under 35 own homes, but this figure jumps to 63% for young couples.

“In 2023, 63% of young couples were homeowners,” Winship noted, adding that this figure is comparable to 1983, which was only slightly below the peaks seen during the housing bubble of the early 2000s. It’s also worth mentioning that interest rates today are the highest they’ve been since before 1970, and higher than every year from 1985 to 1999.

This shifting discussion highlights a crucial point. Couples appear to be less affected by changes in homeownership levels than singles. The more pressing issue seems to be the decline in marriages themselves. Marriage rates among Americans aged 25 to 34 have dropped significantly—from about 67% in 1980 to roughly 37% projected for 2025. This decline presents a significant challenge.

So simply adding more programs isn’t the answer. We need to tackle the cultural issues that contribute to diminishing marriage rates, as housing initiatives cannot replace the need for strong family structures.

This tendency for Washington’s methods to miss the bigger picture is troubling. Despite decades of affordability programs starting as far back as the Clinton administration, homeownership rates haven’t surged as hoped. Recently, Senate Republicans passed Elizabeth Warren’s housing initiative, yet it’s just another attempt to expand the HUD program, encouraging more people to enter an already inflated market while benefiting the same political class that played a role in creating those inflated conditions.

Looking ahead, the overall housing supply shouldn’t be a major concern. As baby boomers age and pass on their homes, a new question looms: Will the younger generation be able to form stable families and own those homes?

So why the decline in marriage? Interestingly, it’s not so much the housing crisis that’s hampering family formation. A more significant factor appears to be a cultural and spiritual shift—a distancing from traditional values. Although rising living costs do strain some households, even a modest increase in the child tax credit isn’t likely to curb the long-standing decline that began with reduced religious practices and a cultural view of marriage as optional.

Europe has faced a similar dilemma. Despite implementing strong incentives like paid leave, universal childcare, and enhanced benefits, countries still struggle to achieve stable birth rates. While financial support can aid families, it doesn’t seem to reignite a desire for marriage or children.

Yet, with a revival of faith, perhaps there’s hope. Research from the Family Research Institute highlights that birth rates are lower among those who engage less with religious communities. Studies from Harvard University suggest frequent attendance at religious services correlates with a 50% lower divorce rate, establishing that solid marriages foster stable family lives and homeownership.

For those raised with Orthodox Christian or Jewish values, the importance of marriage and children is evident from a young age. These aren’t merely lifestyle choices; they carry significant meaning and responsibilities. Faith-based communities also cultivate stronger social connections and clearer norms—creating dating environments that feel more stable.

Recent surveys indicate a drop in religious affiliation across various regions in the last two decades, particularly in the South, where only 51% of people now pray daily, down 14 percentage points over ten years. Approximately a quarter of the population there identifies as religiously unaffiliated, with 35% in the West sharing that sentiment.

This erosion of religiosity helps contextualize the decline in both marriage and homeownership among the youth.

If we genuinely aspire to help more young Americans purchase homes, we must stop viewing the problem solely through the lens of interest rates and housing initiatives. A cultural revival is necessary. We need to refocus on the importance of marriage and, fundamentally, on re-establishing a connection with faith.