The American Dream has given way to the ‘Great Postponement,’ an Ivy League professor says, where achieving doesn’t rely on hard work anymore

For many workers in the United States (and around the world for that matter), the American Dream is a beacon of hope: The idea that anyone, regardless of social class or where they were born, can prosper and succeed if they work hard enough.The American Dream has had some hallmarks: Home ownership, a car or two, a couple of kids, a steady job.U.S. households still, on average, believe the American Dream can be achieved—though their hopes are fading fast. Some academics are suggesting that the ideal is giving way to a new social phenomenon: The Great Postponement.

Susan Wachter is a professor of real estate and finance at the Wharton School of the University of Pennsylvania, and in an article published yesterday, she evaluated how the American Dream is faring as the U.S. turns 250 years old.

Prof. Wachter writes that “in the 20th century, the American Dream entailed a familiar sequence: finish school, find a job, get married, buy a home, raise a family … In the 21st century, affordability has taken a turn for the worse—far worse—in the years since 2022. Housing costs for new home buyers have more than doubled. Mortgage rates went from 3% to 6%, and housing prices rose by 40%.

“The result is the Great Postponement—not........

© Fortune