![End of the MiddleClass Dream?](https://cdn.magzter.com/1367307635/1703096394/articles/GmT5t-GqS1703153374767/END-OF-THE-MIDDLECLASS-DREAM.jpg)
MIDDLE-CLASS FAMILIES ARE BEING PRICED OUT of the housing market amid high mortgage rates and spiking valuations, making it increasingly difficult for them to build wealth. Some financial experts say it's an environment that could lead to the end of the American middle-class dream of owning a home.
For most Americans, owning a property is key to their vision of success. It can help families create financial platforms for future generations to build on. But about 75 percent of homes currently on the market are out of reach for those in the middle class, according to the National Association of Realtors.
Interest on home loans is the highest it's been since the early part of the century, hovering around 7 percent. Mortgage costs have soared as the Federal Reserve has aggressively hiked rates to battle inflation. Meanwhile, the supply of homes has dwindled due to a combination of underbuilding and sellers who are sitting out the market, unwilling to give up low rates they secured in years past, which in turn has pushed up prices.
This dynamic, analysts say, has made buying a home the most expensive it's been this century.
Down payments are higher, monthly mortgage payments are exorbitant and few affordable options exist for middle-class Americans.
"The biggest asset most people are ever going to own is a home," Nicole Bachaud, a senior economist at Zillow, told Newsweek. "Homeownership is really that financial key that helps unlock stability and wealth preservation across generations." Simply making mortgage payments adds to the wealth of households every month, economists say.
"Buying [a] home essentially forces you into [a] savings plan," Danielle Hale, the chief economist at realtor.com, told Newsweek. "When you pay your mortgage, you're paying down some of the debt.
This story is from the December 29, 2023 edition of Newsweek US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 29, 2023 edition of Newsweek US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
![Exhausted No More](https://reseuro.magzter.com/100x125/articles/3257/1747170/V_zukemha1719569030485/EXHAUSTED-NO-MORE.jpg)
Exhausted No More
Political polarization has led to burned-out Americans, weary of civic discourse. The answer lies not in disengagement but, rather, positive engagement
![Reef Rehab](https://reseuro.magzter.com/100x125/articles/3257/1747170/VZrUWlTaH1719569674698/REEF-REHAB.jpg)
Reef Rehab
Innovative concrete structures mix with corals to defend the coastline during hurricane season
![Biden's European Headache](https://reseuro.magzter.com/100x125/articles/3257/1747170/4FvQ8WOES1719562513315/BIDENS-EUROPEAN-HEADACHE.jpg)
Biden's European Headache
The right-wing surge in the EU elections could hamper the president's ambitions in Ukraine and play into the hands of his election rival, Donald Trump
![Lupita Nyong'o](https://reseuro.magzter.com/100x125/articles/3257/1747170/HHo7ByO2g1719568680966/LUPITA-NYONGO.jpg)
Lupita Nyong'o
THE TRAILER FOR A QUIET PLACE: DAY ONE (JUNE 28) SHOWS STAR LUPITA Nyong'o carrying a cat around moments before New York City is overtaken by aliens.
![Do Films Have a Future?](https://reseuro.magzter.com/100x125/articles/3257/1747170/bpbt3o6UT1719568360871/DO-FILMS-HAVE-A-FUTURE.jpg)
Do Films Have a Future?
With the movie industry under threat from streaming and Al, experts predict how Tinseltown will look in 10 years' time
![MOST TRUSTED by PHARMACISTS OTC BRANDS in AMERICA 2024](https://reseuro.magzter.com/100x125/articles/3257/1747170/4mZEPjihY1719567935185/MOST-TRUSTED-BY-PHARMACISTS-OTC-BRANDS-IN-AMERICA-2024.jpg)
MOST TRUSTED by PHARMACISTS OTC BRANDS in AMERICA 2024
HEADACHES, UPSET STOMACHS AND FEVERS-THESE ARE some of the minor conditions that many people treat with over-the-counter medication.
![DISSENTING OPINIONS](https://reseuro.magzter.com/100x125/articles/3257/1747170/kp_Vtc7_81719567494651/DISSENTING-OPINIONS.jpg)
DISSENTING OPINIONS
BUCKING THEIR TRADITIONAL RESERVE, JUDGES FROM ACROSS THE SPECTRUM ARE PUBLICLY DISAGREEING WITH THE SUPREME COURT JUSTICES AND DECISIONS
!['I'm Happy To Disrupt'](https://reseuro.magzter.com/100x125/articles/3257/1747170/R2hWkZRIG1719566724886/IM-HAPPY-TO-DISRUPT.jpg)
'I'm Happy To Disrupt'
Libertarian presidential candidate Chase Oliver talks to Newsweek about Trump, Biden, NATO, Gaza and maximum freedom
![Budget Battle](https://reseuro.magzter.com/100x125/articles/3257/1747170/wuXWxu3Og1719562773762/BUDGET-BATTLE.jpg)
Budget Battle
Protesters demonstrate in Kenya's capital city as the country's members of parliament debate a finance bill on June 18.
![AMERICA'S BEST SPECIALISTS & SURGEONS](https://reseuro.magzter.com/100x125/articles/3257/1731949/HkzEW3Pd41718360828089/AMERICAS-BEST-SPECIALISTS-SURGEONS.jpg)
AMERICA'S BEST SPECIALISTS & SURGEONS
FINDING THE BEST MEDICAL SPECIALIST IS A DAUNTING TASK for anyone requiring specific treatment.