By Mack Eon:
As housing prices continue to climb and essential costs rise, many are left wondering when, or if, they will be able to afford a home of their own.
The National Association of Realtors projects a two percent increase in median existing-home prices this year, bringing the figure to $410,700. This only compounds the 42.6% rise in housing prices since 2020, reported by the Freddie Mac House Price Index.
The impact of these economic conditions has resulted in a growing trend of young adults either remaining in their parental homes or seeking out affordable rental options. Although specific 2025 data is still emerging, historical trends suggest that worsening housing affordability is directly correlated with the increasing number of young people delaying homeownership.
These surges in everyday essentials make it even harder for young professionals to save for a down payment on a home.
For many, the reality of today’s housing market creates a sense of pressure and urgency. Brady Gleason, a junior at Stonehill College, describes the weight of these financial expectations.
“I feel extra motivated, but also extra pressure, because of how expensive the housing market is. I realize how hard I’m going to have to work just to be able to afford a house, let alone a decently nice house I can raise a family in,” he said.
His sentiments reflect a broader feeling among young adults who, despite working hard and planning for the future, find homeownership increasingly difficult to attain.
For others, the generational shift in economic conditions feels unjust. Stonehill College junior Adam Tabba compares today’s housing affordability crisis to the opportunities available to previous generations.
“To a certain extent, it feels unfair. My grandparent's generation could support an entire family working in a factory or as a mailman for 40 hours a week. Now in 2025, despite having a college degree, investing thousands of dollars, there’s no guarantee I’ll even be able to support myself,” he said.
The stark contrast in economic mobility between generations has become a central concern for young professionals who are expected to achieve financial independence in a vastly different landscape than their parents and grandparents faced.
Even for those who have chosen career paths in high-demand industries, the housing market appears daunting. Cole McGinnis, another junior at Stonehill, says the housing market feels impossible to navigate.
“It hangs over your head for sure. I look forward to the idea of graduating, getting a ‘real’ job with my degree, and I think I’ll be compensated well considering my degree is in a high-demand field. Even then, still, it feels like the housing market is cooked,” he said. “When I was a kid, people treated six-figure salaries like the holy grail. Now, I see posts everywhere about how six figures aren’t that much anymore, and you can’t buy a house.”
His perspective highlights a growing frustration that even a traditionally high salary is no longer a guaranteed ticket to homeownership in today’s economic climate.
The notion that rising home prices are part of a larger trend of economic inflation is another concern for Stonehill college sophomore Brady Ferrese.
“I think the hyper-inflation of the housing market, at least what seems to be hyper-inflation, is just like everything else. The price of college is hyper-inflated. The price of food is hyper-inflated. I see posts all the time about how we’re due for a crash, how these prices are meant to drop, but that crash never seems to actually come,” he said.
This sentiment reflects widespread speculation that the economy is in a bubble, yet despite predictions of price corrections, housing remains out of reach for many, with prices across the board continuing to rise.
The Consumer Price Index reported a 0.4% increase in food prices in January, with groceries alone increasing by 0.5%. The average price of food in the U.S. rose by 2.5% in 2024.
Notably, egg prices in January 2025 were 53.0% higher than in January 2024, surpassing previous peak prices from January 2023. Energy costs rose by 1.1%, primarily due to a 1.8% increase in gasoline prices.
For some young adults, the dream of homeownership remains alive but feels increasingly distant. Nicholas Oustinow, a junior at Stonehill College, says these growing costs make owning something as expensive as a house even more unattainable.
“I’m putting a lot of effort into my studies and into my career to attempt to make a good life for myself, and eventually a family too. But in the current environment where the bare necessities are so expensive that I either have to miss out or work even harder just to make ends meet, a house sometimes seems like it will be very hard to buy,” he said.
His concerns underscore how the financial demands of daily life make long-term investments like homeownership more difficult to prioritize, especially in what most consider to be a hyper inflated pricing climate.
Even those with a traditionally optimistic outlook are beginning to question whether their mindset is realistic, especially for college sophomore Christian Lena.
“I’m pretty laid back. I typically have the feeling that things will work themselves out and I’ll be able to figure it out and get a house. Then I see how much the price of housing has actually risen, and I realize that maybe my laid-back attitude is not a good idea,” he said.
His realization echoes a broader shift in mindset among young adults, many of whom are being forced to reassess their expectations for the future.
These voices paint a clear picture of the challenges facing young people in 2025. As housing prices continue to climb and essential costs rise, many are left wondering when, or if, they will be able to afford a home of their own.
The economic landscape has shifted dramatically, leaving many in their 20s and early 30s grappling with a reality that feels increasingly out of reach.
What are some of the reasons the housing market appears to be so difficult to navigate, especially for young people?
Elevated mortgage rates, with the 30-year fixed rate nearing 7% as of December 2024, have increased borrowing costs. This scenario has paradoxically kept home prices high, as potential sellers hesitate to list their properties, further limiting supply, according to Reuters.
The U.S Department of the Treasury also references population growth, particularly among younger adults entering prime home-buying age, having bolstered demand. This demographic pressure contributes to rising home prices as the number of buyers outpaces the available housing stock.
Consider the drastic changes the US housing market has incurred in the last 50 years, by the numbers.
In 1970, the average American home cost was $27,000. When adjusted to inflation, this equals about $222,000 in 2025. The average American’s income in 1970 was $9800, equivalent to $80,000 today.
The average home in 2000 went for $119,000. This, when adjusted to 2025 inflation, is a staggering $978,000. The average income in 2000 was $42,000, when adjusted to inflation, this equals $345,000 today.
The average price of a home in 2025 is $410,700. The average income last year in 2024 was $59,228.
In 1970, one person’s average yearly income could purchase about one-third of a home. In 2000, one person’s average yearly income could likewise purchase about one-third of a home.
In 2025, one person’s average yearly income is barely the price of one-eighth of a home.
However, there must be a way for this generation of young professionals to grapple with this brutal evolution of the market.
Real estate broker Cynthia Cabana offers her insight into the broader market conditions. She explains that regional factors play a key role in high housing prices.
“I can tell you that the talk amongst my peers is that we live in New England. It is one of the most expensive places to live in the country. When prices go up, they don’t tend to come down. We are running out of land, so it’s tough,” she said.
She also acknowledges the fears of many young people regarding future affordability, and that prices changing is not likely.
“The exponential rise in prices is a concern, people should definitely worry about that. Prices could flatline with some foreclosures, but currently, they are going to stay this way,” she said.
Cabana also points to global events as a major factor influencing mortgage rates, particularly the current turbulent situations overseas.
“Interest rates are connected most to worldly happenings more than anything else. Global chaos, national chaos, they equal high interest as the banks need to secure their investments. Suffice to say, things are not exactly calm right now,” she said. “If things calm down, which, typically, they do eventually, we could see these interest rates drop and mortgage rates become significantly more affordable.”
She also sheds light on why housing inventory remains low.
“The housing scarcity is not as artificial as it seems, as people are afraid to lose the equity they have in their home,” she said. “They are on a low-interest rate, a cushy deal, so why would they spend all their equity on a home with a worse interest rate?”
Finally, she points out that investment firms and international buyers play a role in the market.
“You see companies often come in passively and buy up property, but it has not been as up front as you think. International bodies also invest in real estate here,” she said.
Despite the difficult market, she highlights potential avenues for first-time buyers to secure assistance, and how this can help new buyers in this competitive market.
“We have high hopes for interest rates, and grants. Depending on where you live, there are federal grants that can assist first-time homebuyers,” she said.
The main way she says first time buyers can approach the market is by looking to the future, instead of focusing on the daunting challenges of the current landscape.
“Interest rates have a lot of elasticity, and while home ownership seems impossible right now, interest rates are unusually high,” she said. “Those interest rates have a high chance of dropping due to market shifts. Grab what you can now, and refinance later at lower interest rates.”
Despite the daunting realities of today’s housing market, young Americans are finding ways to adapt—whether by delaying homeownership, seeking financial assistance, or exploring alternative living arrangements.
While high prices and interest rates present significant hurdles, experts emphasize that market conditions are cyclical and could eventually stabilize.
For now, prospective buyers must remain patient, proactive, and informed, keeping an eye on opportunities that may arise as economic factors shift.
Though homeownership feels out of reach for many, history suggests that change is inevitable, and with the right approach, the dream of owning a home may still be attainable in the future.
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