Survey: Inflation Has Altered the American Dream

Nearly 70% of Americans believe inflation and rising costs are preventing them from achieving their ideal lifestyles, according to a recent Clarify Capital survey.

The "American dream" has historically symbolized homeownership, financial stability, and a comfortable life. However, a survey of 1,000 Americans highlights a significant shift in how different generations perceive and aspire to this dream in 2024.

While three-quarters of Americans still hope to achieve the traditional American dream, nearly 50% feel it's unattainable for the average person. Economic challenges such as inflation, lack of affordable housing, and job insecurity hinder their aspirations.

Survey respondents believe they need an average salary of $110,000 to live comfortably, with ideal savings varying by generation: Baby Boomers need $135,000, Gen X $140,000, Millennials $145,000, and Gen Z $160,000.

Despite these financial goals, many view key milestones like being debt-free (64%), owning a home (62%), and retiring (48%) as unattainable within the next five years.

To reach these financial goals, Americans favor specific investment assets. Overall, 70% prefer real estate, 69% stocks, and 30% precious metals. This trend varies slightly across generations:

Baby Boomers: Real estate (71%), stocks (63%), precious metals (33%)
Gen X: Real estate and stocks (72% each), precious metals (38%)
Millennials: Real estate (72%), stocks (69%), ETFs (32%)
Gen Z: Stocks (69%), real estate (64%), luxury goods (31%)

Work-life balance and pay are critical for today's workforce. Flexible working hours (74%), remote work opportunities (67%), and competitive salaries (62%) are top priorities. Despite challenges in homeownership, 90% of Americans still prefer owning a home over renting, with 58% favoring smaller, more affordable living spaces.

Americans see emerging industries as key to future prosperity. Artificial intelligence (AI) and machine learning top the list, with 78% predicting these fields will be the most prosperous. Other promising industries include cybersecurity (52%) and biotechnology (48%). Generational views on these industries show:

Baby Boomers: AI and machine learning (72%), renewable energy and sustainability (52%), cybersecurity (46%)
Gen X: AI and machine learning (81%), cybersecurity (51%), renewable energy (50%)
Millennials: AI and machine learning (77%), cybersecurity (54%), biotechnology (48%)
Gen Z: AI and machine learning (78%), cybersecurity (50%), biotechnology (46%)

Self-employment and the digital nomad lifestyle are becoming popular facets of the American dream. About 68% of Americans predict self-employment will rise, and 67% see the digital nomad lifestyle growing in popularity over the next five years.

Despite evolving definitions, significant challenges persist in achieving the American Dream. Inflation (70%), lack of affordable housing (47%), and job market difficulties (45%) are primary barriers. Notably, lower-income individuals (less than $50,000 annually) face the highest likelihood of struggling to achieve financial and lifestyle goals, with 50% doubting they will ever realize their dream.

Confidence varies by generation, with Gen Z being 40% more confident than Gen X in achieving their version of the American dream. Nevertheless, two in five Americans believe they will never attain their dream life, underscoring the enduring impact of economic challenges on the nation's aspirations.

The survey revealed an average respondent age of 40, with a gender composition of 49% male, 49% female, and 2% non-binary individuals. The generational breakdown included 10% Baby Boomers, 26% Gen X, 47% Millennials, and 17% Gen Z. The margin of error for this study was unavailable.