It’s safe to say the American Dream is well sought after for families all across the nation. A study sent via email from DST Gaming revealed the top 10 states where the American Dream is becoming increasingly difficult to attain, based on median family income, the cost to achieve it and the cost as a percentage of income.
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The study based its results on a range of factors, including housing-related costs, transportation and food expenses. Below is what the American Dream looks like, plus the 10 states where attaining the American dream is fading quickly.
What the American Dream Looks Like
Hearing the phrase ‘the American Dream,’ it’s common to think of owning a home with a white picket fence. Beyond that, it evokes thoughts of hitting financial goals and having some money left over for fun each month. Unfortunately, that vision is becoming challenging to achieve for more Americans.
According to a recent Pew Research poll, 41% of people believe that the American Dream is no longer attainable. Several things impact that thought. Continuing inflationary pressures mean your paycheck doesn’t go as far as it did in years past.
Rising housing prices make it difficult for Americans to buy a house. The median price of a home is over $410,000 or 10 times higher than 50 years ago, according to Yahoo Finance.
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Overlooked costs have also exponentially increased of late. Homeowners insurance is one example that’s hampering the budgets of many Americans. The average premium increased 8.7% faster than the rate of inflation in 2018 to 2022, according to the U.S. Department of the Treasury. The agency reports that the increase could be significantly higher, depending on your ZIP code. Climate change is a leading cause for the hike.
Where you live can have a direct impact on your ability to achieve the American Dream. Housing prices, homeowners’ insurance premiums and more can vary widely depending on where you live. The American Dream is becoming harder to achieve in these states.
Louisiana
- Median family income: $66,051
- American dream cost: $69,283.17
- American dream cost (% of income): 104.89%
California
- Median family income: $96,600
- American dream cost: $99,599.42
- American dream cost (% of income): 103.10%
Hawaii
- Median family income: $94,677
- American dream cost: $97,580.66
- American dream cost (% of income): 103.07%
Florida
- Median family income: $77,639
- American dream cost: $78,432.49
- American dream cost (% of income): 101.02%
New York
- Median family income: $87,550
- American dream cost: $87,449.33
- American dream cost (% of income): 99.89%
Nevada
- Median family income: $81,020
- American dream cost: $78,516.19
- American dream cost (% of income): 96.91%
Oklahoma
- Median family income: $71,043
- American dream cost: $68,731.59
- American dream cost (% of income): 96.75
Mississippi
- Median family income: $62,496
- American dream cost: $60,402.49
- American dream cost (% of income): 96.65%
New Mexico
- Median family income: $71,277
- American dream cost: $68,756.70
- American dream cost (% of income): 96.46%
West Virginia
- Median family income: $64,478
- American dream cost: $61,461.55
- American dream cost (% of income): 95.32%
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This article originally appeared on GOBankingRates.com: 10 Top States Where Attaining the American Dream Is Fading Fast
