As the housing market continues to soar, millennials are finding it increasingly difficult to achieve the American dream of homeownership. With rising home prices, stagnant wages, and high levels of student debt, many young adults are struggling to save for a down payment and qualify for a mortgage.

According to a recent report by the National Association of Realtors, only 33% of homebuyers in 2021 were millennials, down from 38% in 2020. This decline is concerning, as homeownership is a key factor in building wealth and financial stability.

So, what can be done to address the challenges facing millennials and homeownership? One solution is for policymakers to implement policies that make it easier for young adults to save for a down payment and qualify for a mortgage. This could include expanding access to affordable housing programs, increasing funding for first-time homebuyer assistance, and reforming student loan policies to make it easier for borrowers to manage their debt.

Another solution is for millennials to consider alternative paths to homeownership, such as co-buying with friends or family members, purchasing a smaller home or condo, or exploring rent-to-own options. These alternative paths may require some sacrifices, but they can also provide a more affordable and flexible path to homeownership.

Ultimately, addressing the challenges facing millennials and homeownership will require a multifaceted approach that involves policymakers, lenders, and young adults themselves. By working together, we can ensure that the American dream of homeownership remains within reach for all generations.