Is The American Dream Still Attainable? What 30 Years of Data Actually Reveals

The American Dream sounds great in theory—work hard, build wealth, achieve security. But is the American dream attainable in 2024? The numbers tell a complicated story.

According to a 2024 Pew Research Center poll, just 53% of Americans believe they can still achieve the American Dream. That’s a massive drop from the 41% who think it was once possible, and another 6% who believe it never existed at all. The real kicker? Younger Americans are the most pessimistic—fewer than 40% of those aged 18 to 29 believe the American dream is within reach today, compared to older generations who remain more optimistic.

To get to the heart of whether this dream has merit, we analyzed how much key life milestones actually cost a typical family of four over the past three decades and whether wages have kept pace. The verdict: mixed signals.

Income Growth: The One Bright Spot

Start with the good news. A family of four earned roughly $113,000 in 2022, compared to about $41,450 in 1990. Adjusting for inflation, that 1990 income would equal $91,500 in today’s dollars—meaning real income has grown meaningfully. The job market also appears stronger: unemployment sits at 4.1% versus 5.4% at the start of 1990.

This part of the American dream is alive.

Housing: The Elephant in the Room

Here’s where things get rough. The median home price in Q2 2024 was $412,000, versus roughly $127,000 in 1990. Even accounting for bigger houses today, homes now cost 3.64 times the average family income, up from 3.05 times in 1990.

Mortgage rates have dropped (under 7% now versus nearly 10% in 1990), which helps slightly. But let’s be honest: a typical family today faces significantly steeper barriers to homeownership—arguably the cornerstone of the American dream.

Homeownership is struggling.

College: Neither Dead Nor Thriving

More Americans have degrees than ever—38% of people 25 and older today versus 20% in 1990. Yet college remains in limbo on the American dream scorecard. At public four-year institutions, in-state tuition hasn’t risen dramatically as a share of family income (staying around 11-12%). Private college costs have worsened (jumping from 29% to 37% of income), but the overall picture is muddled.

Yes, college graduates earn more over their careers. But they also graduate with more debt. The trade-off makes this pillar of the American dream neither clearly alive nor dead—more like life support.

College is hanging on.

Cars: A Steeper Climb

New car prices have jumped substantially. A new vehicle now costs $47,401—42% of a typical family’s annual income, up from 36% in 1990. Used cars tell the same story: 23% of annual pay now versus 16% in 1990. Longer loan periods compound the burden, meaning families carry debt longer.

Ironically, families are buying fewer cars (2.4 versus 2.7 in 1990), suggesting affordability pressures are real.

Car ownership is becoming less attainable.

Day-to-Day Living: A Rare Reprieve

Here’s an underrated detail: groceries, clothes, and basic household expenses are actually becoming cheaper or staying flat. In 1990, a family spent 73% of income on food, housing, clothes, transportation, healthcare and entertainment. By 2022, that share dropped to 70%—even as income rose. Food and especially clothing have gotten noticeably cheaper. Healthcare is the exception (skyrocketing), but the overall trend favors households.

Everyday costs are manageable.

So, Is The American Dream Attainable?

The answer depends on which dream you’re chasing. Families are earning more and basic living expenses are staying manageable. Yet the traditional benchmarks—owning a home, buying a car, funding college—have all become significantly harder to afford, with homeownership taking the biggest hit.

The Fed’s interest rate hikes post-pandemic made borrowing more expensive, pushing home prices further out of reach. According to the Atlanta Fed, homes have been unaffordable for more than three years for many families.

Bottom line: The American dream isn’t dead, but it’s on life support. Income growth alone hasn’t been enough to offset asset inflation. Whether is the american dream attainable depends less on hard work and more on luck with timing, parental support, or choosing a different definition of success than previous generations did.