Redefining the American Dream

The Changing Face of the American Dream

For a long time, the American Dream has meant homeownership, financial stability, and a comfortable life. Its definition is now evolving as each generation has different views of what success looks like today.

Three-quarters of Americans still hope to achieve the traditional American Dream, but nearly 50% feel it’s unattainable for the average person. Many also viewed being debt-free (64%), owning a home (62%), and retiring (48%) as unattainable over the next five years.

On average, they said they’d need an annual salary of $110,000 and savings of $150,000 to live comfortably. That ideal savings amount varied by generation:

• Baby boomers: $135,000
• Gen X: $140,000
• Millennials: $145,000
• Gen Z: $160,000

Maybe certain portfolio assets could help them get there. Here’s the breakdown of Americans’ top choices overall and by generation:

Overall

1. Real estate (70%)
2. Stocks (69%)
3. Precious metals (30%)

Baby boomers

1. Real estate (71%)
2. Stocks (63%)
3. Precious metals (33%)

Gen X

1. Tie: Real estate (72%) and Stocks (72%)
2. Precious metals (38%)
3. Exchange-traded funds (ETFs) (28%)

Millennials

1. Real estate (72%)
2. Stocks (69%)
3. ETFs (32%)

Gen Z

1. Stocks (69%)
2. Real estate (64%)
3. Luxury goods (31%)

Now, what about the “American Dream” job? Work-life balance and pay have been top concerns lately. Americans said they value flexible working hours (74%), remote work opportunities (67%), and competitive salaries (62%) over other job perks.

Even though home ownership can be hard to accomplish these days, 90% of Americans still prefer owning a home over renting. But with 58% favoring smaller living spaces, many Americans may set their sights on owning smaller, more affordable homes to make their home-owning dreams come true.

Emerging Industries and Lifestyles

The professional industries and lifestyles that have defined the American Dream are also shifting. We asked Americans about the most promising industries of the future and learned about different generations’ new aspirations and expectations.

Artificial intelligence (AI) and machine learning topped the list, chosen by 78% of Americans as likely to be the most prosperous industry in the future. Next in line were cybersecurity (52%) and biotechnology (48%). Another 2 in 5 Americans were more interested in AI and machine learning than any other industry.

The most prosperous industries, according to each American generation, were:

Baby boomers

1. AI and machine learning (72%)
2. Tie: Renewable energy and sustainability (52%) and Biotechnology (52%)
3. Cybersecurity (46%)

Gen X

1. AI and machine learning (81%)
2. Cybersecurity (51%)
3. Renewable energy and sustainability (50%)

Millennials

1. AI and machine learning (77%)
2. Cybersecurity (54%)
3. Biotechnology (48%)

Gen Z

1. AI and machine learning (78%)
2. Cybersecurity (50%)
3. Biotechnology (46%)

While these industries might be the most lucrative to work in, Americans also value a certain amount of independence in their work. We found that 68% of Americans predicted self-employment to become a popular facet of the American Dream in the next five years, and 67% said the same about being a digital nomad.

As for their dream purchases, real estate was the top choice across all generations (69%), followed by hotel stays (46%) and fine dining (42%).

Here’s how those top dream purchases varied by generation:

Baby boomers

1. Real estate (68%)
2. Fine dining (48%)
3. Hotel stays (41%)

Gen X

1. Real estate (69%)
2. Hotel stays (47%)
3. Fine dining (40%)

Millennials

1. Real estate (72%)
2. Hotel stays (50%)
3. Flights (45%)

Gen Z

1. Real estate (63%)
2. Fine dining (45%)
3. Flights (43%)

What Stands in America’s Way

While the American Dream has changed, it continues to inspire and motivate Americans. So, what are the most common obstacles in achieving their desired lifestyles?

Despite the American Dream’s evolving definitions, many Americans face significant challenges in achieving it, and 2 in 5 said they don’t believe they ever will. Here’s the percentage of each generation who felt this way:

• Baby boomers: 44%
• Gen X: 48%
• Millennials: 40%
• Gen Z: 32%

We broke down their responses by income, too:

• Lower income (less than $50,000 annually): 50%
• Middle income ($50,000-$149,999 annually: 34%
• Upper income ($150,000 or more annually): 19%

Lower incomes appeared to have a higher likelihood of struggling to achieve certain financial and lifestyle goals. The primary challenges preventing Americans from achieving these dreams were inflation (70%), lack of affordable housing (47%), and a hard time finding the right job (45%). Despite obstacles like these, Gen Z was 40% more confident than Gen X in their ability to achieve their version of the American Dream.

Redefining American Success

Once a unifying aspiration, the American Dream has evolved to mean different things to different generations. While the traditional notions of homeownership and financial stability are still important, Americans are increasingly interested in other aspects, such as self-employment, remote work, and emerging industries. But economic challenges, including inflation, lack of affordable housing, and job insecurity, hinder many Americans’ ability to achieve their dreams. These unique aspirations and challenges are important for defining America’s success on an individual and national level.

Methodology

We surveyed 1,000 Americans to explore perceptions of the American Dream. The average age of respondents was 40 and comprised 49% males, 49% females, and 2% non-binary individuals. Their generational makeup included 10% baby boomers, 26% Gen X, 47% millennials, and 17% Gen Z.

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