Shocking Survey: 60% of Americans Say AI Could Make Homeownership a Distant Dream!

The U.S. housing market has changed dramatically since the post-war era when the median home price hovered around $7,300—equivalent to about $101,000 today when adjusted for inflation. For many young Americans, particularly Gen Z and Millennials, the dream of homeownership feels increasingly out of reach. The median age of a first-time homebuyer has risen to 40, a significant jump from the early 30s just a decade ago. This trend is compounded by economic anxiety surrounding the rapid rise of artificial intelligence (AI), which many fear could precipitate a “jobpocalypse,” further sidelining their hopes of obtaining a home.

Daryl Fairweather, the chief economist at Redfin, noted the psychological impact of AI on the housing market. “I think that AI and the potential for AI layoffs is a major part of that economic anxiety that’s holding people back from making a commitment to buying a home—even though it got more affordable to buy one,” she explained to Fortune.

A recent survey conducted by Ipsos and commissioned by Redfin, which included responses from 4,000 U.S. residents, revealed that nearly 3 in 5 Americans (59%) believe that AI advancements will eliminate jobs and make homeownership even more unattainable. This sentiment reflects a stark reality: not only are home prices rising, but the prospect of job loss due to AI is shifting the goalposts further away from achieving the American dream.

The situation has become particularly dire for Gen Z, prompting many parents to help fund down payments. With older generations holding the bulk of wealth in the U.S., the phenomenon often referred to as the Great Wealth Transfer is manifesting itself in parents prioritizing housing assistance over college tuition. Many view homeownership as a more immediate and tangible vehicle for generational wealth.

AI’s Impact on the Housing Market

Fairweather pointed out that negative perceptions surrounding AI may be contributing to reluctance in the housing market. Despite a recent dip in mortgage rates that typically would stimulate buying activity, the opposite has occurred. “People are very concerned that they’re going to get the short end of the stick with AI,” she said. “I think it goes back to just how other technological advancements have been handled and how jobs that used to be good-paying middle-class jobs have been automated away.”

This concern spans political ideologies, with approximately 63% of Democrats and 57% of Republicans agreeing that AI will eliminate jobs and complicate the path to homeownership. Yet, there is a counter-narrative; about 30% of survey respondents believe that advances in AI could ultimately bolster the U.S. economy, making homes more affordable.

While many business leaders tout the productivity potential of AI, the immediate impact on employment has been less clear. Companies such as Block, founded by Jack Dorsey, and Atlassian, an Australian-American firm, have recently announced significant layoffs linked to AI. However, research published last month suggests that thousands of executives have yet to experience any real productivity or employment declines attributable to AI.

“Part of these fears could be overblown because of all of the rhetoric about how transformative AI will be,” Fairweather noted, hinting that the anxieties surrounding AI may not be as warranted as they seem. “But that could just be hype.”

As the landscape of the housing market continues to evolve amid economic uncertainties and technological advancements, one thing is clear: the American dream of homeownership is increasingly becoming a complex challenge for younger generations. With the weight of economic anxiety and the specter of AI layoffs looming, securing a place to call home may require not just financial resources, but also a reassessment of the pathways available to achieve that dream.