Is the American Dream Still Possible for the Middle Class?

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The concept of the American Dream, symbolizing the possibility of prosperity and success through hard work, has long stood as a beacon for the middle class. Yet, today, many wonder: Can the middle class still realistically attain the American Dream? With living costs rising rapidly, this classic vision of suburban homeownership and financial stability feels increasingly elusive.

To investigate further, GOBankingRates consulted financial specialists. Surprisingly, achieving the American Dream remains possible for the middle class, although the journey demands more effort and strategic planning than in the past.

Understanding the Challenges to the American Dream

While it’s commonly believed that wages have stagnated, experts like Andrew Latham, CFP and director at SuperMoney, suggest this isn’t entirely true. Wages have, in fact, improved when adjusted for inflation; however, essential components of the American Dream, such as housing and education, have seen costs soar beyond wage growth.

The Impact of Escalating Costs

Latham explains, “Real earnings have grown over the years, outpacing inflation at times. However, significant costs like housing, healthcare, and higher education have escalated at a much steeper rate, making it more challenging for the middle class to achieve the traditional American Dream.”

Strategies for Attaining the American Dream

Location plays a vital role. Herman Thompson, Jr., CFP at Innovative Financial Group, highlights that living in different regions can impact one’s ability to afford the American Dream. For instance, owning a home in Macon, Georgia, is more achievable than in San Francisco, California, due to notable differences in median home prices and salaries.

Adapting to Changing Realities

Consumer finance expert Erica Sandberg asserts that while the middle class can still attain the American Dream, doing so often involves making sacrifices, such as adopting a more frugal lifestyle and extending the timeline to achieve personal financial goals.

Creating a Sound Financial Plan

Glenn Williams, CEO at Primerica, emphasizes the necessity of a well-thought-out financial plan. “Today, financial education and access to experienced advice are more crucial than ever. A strategic approach to finances can distinguish between stagnation and progress,” he advises.

Editor’s note: Median home prices were sourced from Realtor.com. Average salaries were sourced from ZipRecruiter and reflect data as of May 1, 2025.

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