Core Insights - The American Dream, traditionally associated with financial stability and homeownership, is increasingly perceived as unattainable for many individuals today [1] Economic Challenges - Rising costs, reliance on debt, and economic uncertainty are identified as the primary reasons making it harder for individuals to achieve financial milestones [3] - Median household income has increased to $80,610 in 2024 from $21,650 in the 1980s, but this figure is misleading when considering the rising costs of housing, education, and childcare [4] Debt Burden - Credit card interest rates are currently between 21% and 24%, with the average American holding over $6,700 in credit card debt, which disproportionately affects younger generations [5] - This debt prevents younger individuals from investing or saving, forcing them to focus on bill payments and interest [5] Systemic Issues - Financial challenges are not solely due to individual choices; systemic issues like wage stagnation, wealth inequality, and policy uncertainty significantly contribute to the current economic landscape [6] Housing Market - The median home price has increased from 2.2 times the median household income in the 1980s to 5.2 times today, making homeownership much less accessible [7] Education Costs - Tuition for private colleges has risen from approximately three months' worth of income in the 1980s to about six months' worth today, while the value of degrees is declining due to increased accessibility and alternative job opportunities [7] Childcare Expenses - Childcare costs have escalated from 1% of median income in the 1980s to around 16% per child per year, representing a significant financial burden for working families [7]

Core Viewpoint - The American Dream is perceived as increasingly unattainable, with nearly 70% of respondents believing it "no longer holds true or never did," marking the highest level of skepticism in the survey's 15-year history [1] Group 1: Pessimism Across Demographics - The pessimism regarding the American Dream spans across political, class, and demographic lines, with similar views reported by men and women, young and old, and across income levels [2] - A significant political divide exists, with 55% of Republicans expressing negative views compared to 90% of Democrats [2] Group 2: Economic Sentiment and Future Outlook - Only 25% of respondents feel they have a good chance of improving their standard of living, a record low in the 38-year history of the study, and over 75% doubt life will improve for the next generation [4] - Despite the discontent, 44% of respondents felt positive about the economy, an increase from 38% in 2024 [5] Group 3: Economic Indicators - The median home price has increased by 532% from $63,900 in 1979 to $403,800 in 2025 [5] - Wages for middle-income earners have only grown by 6% since 1979 [5] - The wage gap has widened, with CEOs now earning 296 times what a typical worker makes, up from 30 times in 1979 [5] - Inflation rates have been significant, with rates of 7% in 2021 and 6.5% in 2022 impacting household budgets [5] - The consumer price index indicates inflation at 2.7% [5] - Americans have reached record credit card debt levels of $1.21 trillion in 2024 [5] - The unemployment rate stands at 4.3% as of August 2025, which is considered a healthy level [5]