Living the American Dream Will Now Cost $5 Million

"The American dream of owning a home, raising a family, and retiring comfortably now comes with a staggering $5 million price tag over a lifetime, according to a new report by Investopedia. This cost reflects the significant rise in essential expenses like housing, healthcare, and education, outpacing wage growth in the past two decades. The analysis compiled the estimated lifetime costs of eight key milestones associated with the dream, highlighting the increasing financial challenges faced by most Americans striving to achieve these traditional aspirations."

"The average American needs $5 million over a lifetime to achieve traditional milestones like retirement, health care, homeownership, raising children, education, weddings, cars, vacations, and pets, a figure far exceeding what most households can earn. Homeownership remains a cornerstone of the American dream, with a lifetime cost of nearly $1 million, driven by rising home prices and mortgage rates, creating affordability pressures in the housing market."

Achieving traditional American milestones now requires roughly $5 million over a lifetime. Essential expenses such as housing, healthcare, and education have risen significantly and have outpaced wage growth over the past two decades. Lifetime costs across eight key milestones were calculated, revealing mounting financial pressure on most households attempting homeownership, raising children, financing education, and saving for retirement. Homeownership alone approaches a lifetime cost of nearly $1 million as higher home prices and mortgage rates squeeze affordability. National median list prices remained near $429,990 in 2025. Many households face a widening gap between earnings and the costs of the American dream.

Read at SFGATE