Three out of four adults aspire to the American dream, but nearly half believe it’s out of reach for them as living costs rise, a poll has found.
Clarify Capital reported this week that more than 6 in 10 people responding to a national survey predicted living debt-free and owning a home will become unrealizable for the average person in the next five years.
Nearly half told the New York City-based financial services firm that retirement would also become impossible. More than a third added a college degree and “having only one job” to the list of unthinkable life goals.
“Contrary to media and White House reports about the economy, most respondents replied that people are financially strained by rising inflation, increased housing costs and stagnant wages,” said Michael Baynes, CEO of Clarify Capital.
The survey defined “the traditional American dream” as homeownership, financial stability and “a comfortable life.”
Clarify said 70% of participants blamed inflation for blocking their “dream lives.” Smaller numbers also cited scarce affordable housing, good jobs, health care and politics as factors.
Survey respondents of all ages generally agreed on the importance of work-life balance, the opportunity to work remotely and the growth of artificial intelligence and cybersecurity jobs.
Respondents estimated they would need an average salary of $110,000 yearly and $150,000 in savings to live “a comfortable life.”
Researchers uncovered some demographic differences as older and low-income participants proved likelier than others to express despair.
For example, young people in Gen Z were 40% likelier than middle-aged adults in Gen X to feel confident about reaching the American dream. But they also said they needed the highest salary of any generation — $160,000 a year — to do it.
“Even with a booming stock market or extremely low levels of unemployment, day-to-day financial pressure could make economic prosperity feel elusive for many Americans, and that might explain the bleak outlook captured in our report,” Mr. Baynes added in an email.
Multiple studies have shown economic despair among working adults rising alongside consumer prices and interest rates since the pandemic.
The Archbridge Institute, a District of Columbia-based public policy center, reported in July 2023 that 24% of adults it polled said the American dream was “out of reach” for them. That was up from 18% in a 2022 survey.
In the poll released this week, Clarify Capital surveyed 1,000 adults ages 18 to 81 through the online platform Connect. Researchers conducted the survey April 11-15 and reported a margin of error of plus or minus 3 percentage points at the 95% confidence level.
• Sean Salai can be reached at ssalai@washingtontimes.com.