American Dream Replaced by 'Great Postponement,' Professor Says

The traditional American Dream, characterized by achieving prosperity and success through hard work, is being supplanted by a phenomenon termed the 'Great Postponement,' according to Susan Wachter, a professor of real estate and finance at the Wharton School of the University of Pennsylvania. Wachter articulated this concept in an article published yesterday, evaluating the state of the American Dream as the United States approaches its 250th anniversary. She noted that in the 20th century, the American Dream followed a predictable sequence: completing education, securing employment, marrying, purchasing a home, and starting a family. However, the 21st century has seen a significant deterioration in affordability, particularly since 2022. Wachter highlighted that housing costs for new homebuyers have more than doubled, with mortgage rates climbing from 3% to 6% and housing prices increasing by 40%. This economic shift has resulted in the 'Great Postponement,' affecting not only homeownership but also other critical life milestones.

Evidence of this postponement is observable across various life stages, as detailed by Professor Wachter. A study released in June by Realtor.com indicated that a record 25.2 million adults under the age of 35 were residing with their parents in 2025. This figure represents nearly one in three individuals in this age group. Notably, a substantial majority of these adults, 70%, were employed, suggesting that their continued co-residency is driven by economic factors rather than unemployment. This steady employment share, coupled with rising housing costs, contributes to the increasing trend of young adults living at home.

Further indicators of delayed life milestones are provided by Census Bureau data. In December, the Bureau reported that the estimated median age for men entering their first marriage had risen to 30.8 years, and for women, it increased to 28.4 years. These figures represent a significant increase from 1975, when the median age for first marriage was 23.5 for men and 21.1 for women. This trend suggests a broader societal shift where individuals are postponing traditional markers of adulthood and independence. The 'Great Postponement' signifies a departure from the earlier expectation that hard work would directly and relatively quickly lead to the attainment of these life goals, with economic realities now playing a more dominant role in shaping life trajectories.

The 'Great Postponement' reflects a fundamental challenge to the aspirational narrative of the American Dream. The increasing difficulty in achieving financial stability and major life events like homeownership and marriage at earlier ages suggests a widening gap between societal expectations and economic realities for many Americans. Professor Wachter's analysis underscores the impact of economic headwinds, such as rising inflation and interest rates, on the ability of younger generations to replicate the financial security and milestones previously associated with the American Dream. This phenomenon has implications for consumer spending, family formation, and overall economic dynamism, as significant life decisions are deferred, potentially altering long-term economic growth patterns and individual life satisfaction.