The Changing American Dream

It is no secret that today’s average American household is different that it was when our parents were our age. Back in the ‘50s and ‘60s, over 75% of American households were married couples. Today, that number is less than 50%. The average American household is no longer a family consisting of a married couple with their three children and a golden retriever living in their suburban home. In fact, the growth of non-family homes versus family homes is staggering. According to a recent report by CNBC, in the past fifty years, non-family households have grown nearly 500%, from 7.9 million to 39.2 million. Meanwhile, family households have increased just 1.7 times, from 45.1 million to 77.5 million.

Family households value sheer size more than any other factor in housing. Non-family households are less willing to commute, valuing location and proximity to work and entertainment. The “McMansions” that were the all the rage 10 years ago are beginning to see their demise. High property taxes, daunting mortgage payments, and long commutes have made this type of living increasingly less desirable. In turn, the downtown condominium or full-service apartment is the piece of the housing sector that has seen continued growth in development and demand from consumers. Suburban “Hummer House” owners will continue to keep for sale signs in their yards while downtown communities will have minimal vacancies or even waiting lists.

The American Dream is changing.