Younger Americans are redefining the American dream not out of choice, but out of economic necessity, as soaring costs of living and job insecurity make traditional milestones increasingly unattainable, according to a new Simon-Kucher study shared exclusively with USA TODAY.
The study reveals a stark generational divide in how Americans view success and stability. While traditional markers like homeownership and family remain aspirational, younger generations are prioritizing immediate survival and personal freedom over long-term wealth accumulation as economic pressures mount.
Economic Barriers Hit Younger Workers Hardest
Cost of living emerged as the universal barrier across all four generations surveyed, but younger Americans face additional hurdles that older generations largely escaped. Job insecurity was cited as a major barrier by 31% of Gen Z and 26% of millennials, compared with just 20% of Gen X and a mere 5% of baby boomers.
Shikha Jain, a Simon-Kucher partner and lead of the consumer sector for North America, said, "The last few years have been difficult for Americans." She explained that baby boomers remain retirement-oriented, while younger Americans are focused on immediate financial goals like paying for essentials and discretionary experiences. "That tension creates trade-offs for Gen Z and millennials who are taking on debt and sacrificing long-term goals like owning a home to maintain a quality of life in a challenging financial environment," Jain said.
The Simon-Kucher survey of 5,000 adults representing Gen Z, millennials, Gen X and baby boomers across varying household incomes found that between 43% and 62% of respondents said core milestones such as home ownership, early retirement and financial independence are more difficult for most Americans to achieve than for older generations.
The Homeownership Gap Widens
Homeownership, long considered central to the American dream, illustrates the growing divide between generations. While 79% of baby boomers own homes, ownership drops to 64% for Gen X, 59% for millennials and just 29% for Gen Z. Despite these disparities, 78% of millennials and 84% of Gen Z still aspire to homeownership, even as 58% of millennials and 59% of Gen Z acknowledge it has become harder than for previous generations.
Paige Friscioni, 38, a millennial who lives in Detroit and owns a business selling designer toys, said she grew up hearing that the American dream meant going to college, working hard, buying a house, having kids and a dog, and living comfortably until retirement. As she got older, she saw peers check those boxes and find themselves miserable or wanting something else. "So maybe the American dream isn't really the house or the job or whatever, the Goldendoodle. Maybe the real American dream is the freedom to decide what your life looks like," Friscioni said in a recent TikTok post.
Shifting Priorities Reflect Economic Realities
The study found that for baby boomers, the top category was retiring comfortably at 71%. For Gen X, the top category was tied between retirement and financial stability, meaning meeting basic needs, at 60%. For millennials and Gen Z, the top category was personal freedom and independence, at 50% and 52%.
While all generations ranked financial wealth as their top measure of success, baby boomers at 23% and Gen X at 18% ranked material possessions second. In contrast, millennials and Gen Z ranked freedom over their time second, tied at 16% for both. Jain said, "Many Americans are choosing quality of life over status and wealth accumulation, seeking personal experiences and control like flexibility at home and work, even if it means trading in long-term savings."
The path to achieving the American dream appears less clear among respondents. Thirty-five percent said there was no clear or best path. No single route, including a career in skilled trade or technology, a four-year degree or a creative or independent career, ranked above 15%.
A majority of those surveyed still believed in the traditional American dream of homeownership, family, hard work, stability and financial progress. Sixty-six percent saw homeownership as central to the traditional American dream, 61% said raising a family was central, 58% said seeing success through hard work was central, 56% rated financial stability as key and 55% rated stable employment as key.
Jain said, "The American dream is still alive, but it's no longer defined by a shared and uniform vision from long ago, pining for home ownership, raising a family, achieving financial stability, and marked by hard work." She said, "Today, the new American dream is very personal and represents making life work today, by making ends meet, covering daily expenses, and enjoying meaningful experiences."
The findings were similar to another study earlier this year by the Savannah College of Art and Design's applied research studio. In that study, Gen Z and millennials said they felt the path to financial stability is steeper and more precarious than it was for past generations and that the dream felt outmoded or distant. Financial security had become the most important aspect of the American dream for young respondents.
Friscioni said she believes she has reached the American dream, but not the one she was taught growing up. She traveled around the world after high school, has a Gen Z-aged daughter and bought a house at a young age, but always felt judged by others. "The American dream shouldn't be something that's designed by somebody else. It should be something that's designed by you," Friscioni said. "The American dream isn't that perfect thing anymore. The real American dream is to decide what you want to be."
Why This Matters:
The redefinition of the American dream among younger generations reflects a fundamental shift in economic opportunity and security. When job insecurity affects nearly one-third of Gen Z workers compared to just 5% of baby boomers, and when the majority of younger Americans view traditional milestones as harder to achieve than for previous generations, it signals a breakdown in the economic mobility that once defined American prosperity. The fact that younger workers are forced to choose between immediate quality of life and long-term financial security, taking on debt to maintain basic standards of living, raises questions about wage stagnation, housing affordability, and whether current economic structures adequately support working families. As homeownership rates plummet among younger cohorts despite strong desire to own homes, policymakers face pressure to address systemic barriers that prevent millions of Americans from accessing the stability previous generations took for granted. The shift from wealth accumulation to survival-focused priorities among younger workers suggests that without intervention to address cost of living pressures and job security, intergenerational economic inequality will continue to widen.