By 
Remember the good ol’ 1980s?
When hair was big, tunes were catchy, and your parents could afford a house by the time they were around 25?
Fast forward to today.
The median age of first-time homeownership has crept up to 36 years old (2022), and that same house?
It will cost you a lot more.
The dollar doesn’t stretch as far, houses feel like a millionaire’s game, and you might be wondering:
Why the hell aren’t I ‘succeeding’?
Today, we dive deep to find out why many of us feel like we’re running an economic marathon with weights tied to our ankles.
Disclaimer: This post aims to provide perspectives on generational economic shifts and is not intended to be financial advice in any way. Always consult with a financial professional before making any financial decisions.
Reason 01: A slow down in wage growth
Let’s hit you with some cold, hard numbers: from the post-World War II era up until the 1970s, when wages grew 91 %.
Now compare this to more recent times.
From 1973 to 2013, the hourly wage for a typical employee rose a tiny 9%.
Quite the difference, right?
The Census Bureau’s 2022 income report put median household income at $74,580, down 2.3% from $76,330 in 2021 after adjusting for inflation. Both figures are expressed in 2022 dollars and refer to households.
That is a specific one-year comparison, not evidence that incomes have stayed unchanged since the 1980s. Longer-term comparisons need the same population and a consistent inflation measure.
Wages are only part of the picture: housing payments, education expenses, and healthcare costs also affect how far a household’s income can stretch.
Keep these figures in mind as you read on.
Reason 02: The great housing hurdle
Ah, the dream of homeownership.
A white picket fence, a dog named Spot, and maybe a treehouse for the kids.
For our parents, this dream was attainable, almost an expected rite of passage.
Today?
For many, it feels more like a distant dream.
Why?
For one consistent historical measure, Census Bureau and HUD data published by FRED show a median sales price of $63,700 for new U.S. houses sold in the first quarter of 1980, compared with $435,400 in the third quarter of 2023.
Those are nominal prices, not an inflation-adjusted comparison, and the series covers newly built houses rather than every home sold. It cannot, on its own, tell us how much harder buying a home has become.
Affordability also depends on income, mortgage rates, the deposit required, and where you live. The price of a home is only one part of the hurdle.
It’s no wonder that homeownership, once a cornerstone of the American Dream, now feels out of reach for many.
Reason 03: Education costs and student debt
College can be a substantial expense, but it helps to distinguish the published bill from what a student actually pays.
The National Center for Education Statistics reports that, in 2022–23, average total attendance costs at public four-year institutions were $27,100 for first-time, full-time undergraduate students living on campus. That total includes tuition and required fees, books and supplies, room and board, and other expenses. Grants and scholarships can reduce the amount students and their families pay.
The trend is not the same everywhere. From 2012–13 to 2022–23, inflation-adjusted average tuition and fees at public four-year institutions fell 5%, while those at private nonprofit four-year institutions rose 8%. These comparisons use constant 2022–23 dollars and cover tuition and fees, rather than the whole attendance budget.
So it is too simple to say that every college bill keeps rising at the same rate. The institution, living arrangements, financial aid, and borrowing all matter. For graduates with loan repayments, education expenses can compete with saving for a home or other goals.
Reason 04: Healthcare costs
Healthcare expenses can put pressure on a household budget, even when someone has insurance through work.
For a clearly defined historical example, KFF’s 2019 Employer Health Benefits Survey reported an average annual premium of $20,576 for employer-sponsored family coverage. Workers contributed an average of $6,015 toward that premium, with employers paying the rest.
These are annual family-policy amounts, not per-person spending figures. They also exclude additional expenses such as deductibles and other cost sharing.
KFF reported that average family premiums had risen 54% over the preceding ten years. That is a nominal increase, not an inflation-adjusted doubling. The figures describe employer-sponsored coverage in 2019, rather than current premiums or the cost for every American.
The point is that having employer coverage does not remove healthcare costs from the family budget. What an individual household pays depends on its plan, employer contribution, and care needs.
It’s not all bad, though
Amidst the economic tightropes and challenges, there’s a silver lining that’s too bright to ignore. Here are some of the undeniable boons of our time:
- The Internet Revolution: We’re living in the digital age, where the world is quite literally at our fingertips. The Internet has democratized information, meaning we have access to a wealth of knowledge that our parents could only dream of. From free online courses to expansive digital libraries, the barriers to learning have significantly diminished.
- Global Opportunities: Thanks to digital platforms, geographical borders are becoming less of a barrier. Whether it’s remote work, freelancing, or e-commerce, the global marketplace allows us to tap into opportunities well beyond our immediate surroundings.
- Connectivity & Community: Social media and various online communities have made it easier to connect, collaborate, and share with like-minded individuals from all over the world. This connectedness can lead to collaborations, partnerships, and shared resources that were harder to come by in the past.
- Technological Advancements: From healthcare innovations to energy-efficient solutions, technological advancements are constantly improving our quality of life. These innovations not only make life more convenient but often more sustainable and interconnected.
- Shift Towards Passion & Purpose: Unlike the often singular career paths of the past, today’s world is more accommodating to those who wish to pursue their passions, change careers, or embark on entrepreneurial ventures. There’s a growing emphasis on finding purpose and fulfillment in what we do.
So while the economic challenges of our time are real, we’re also equipped with tools and opportunities that previous generations might have deemed magical.
By leveraging these assets and approaching challenges with a problem-solving mindset, we’re not just surviving; we have the potential to thrive in unprecedented ways.
The bottom line
Housing payments, education expenses, healthcare bills, and wage growth all shape the financial hurdles we face. Their impact varies by household and period.
The challenges are real, but so is our capacity for innovation, adaptability, and resilience.
Rather than getting bogged down by comparisons to the past, it’s time to focus on crafting our own blueprint for success.
It’s about recognizing the hurdles, leveraging modern tools and knowledge, and forging a unique path in today’s complex world.
In the words of an old adage, “It’s not the cards you’re dealt, but how you play them.”
We might be playing in a tougher game, but with the right strategies and mindset, we’re far from folding.
Have you found strategies or solutions that work for you in this new economic landscape?
Share them in the comments below – your insights could be the game-changer for someone else!