Having a good job and earning more money does not always guarantee that a person can buy a house in the United States. In fact, a new study indicates that there is another element that weighs even more in the construction of wealth: parental assets.

For years, buying a home has been seen as one of the main ways to achieve economic stability and build wealth in the so-called American dream. However, researchers have found that many people are more likely to become homeowners not only because of their salary, but because of their family's financial situation.

The analysis was carried out by specialists from the United States Census Bureau and Carnegie Mellon University. To do this, they reviewed tax data from the Internal Revenue Service (IRS), census records and property documents of 3.4 million families.

The research followed people born between 1978 and 1986 to find out if they managed to buy a home between 2019 and 2021, when they were between 34 and 42 years old.

One of the most important findings was that children of homeowners are more likely to buy a home than those who grew up in families that rent, even when both groups achieve similar incomes during adulthood.

“Even if children grow up to earn about the same as other adults, those whose parents are wealthier have higher rates of homeownership, and when they become homeowners, their homes are more valuable,” explained Max Risch, an economist at Carnegie Mellon University and co-author of the study. “The opportunity to achieve this American dream depends more on the wealth of your parents than we would like.”

This is because many wealthy families can help their children with a down payment on a home, college expenses, or financial support at important times. For millions of people, especially young Latinos in the United States, raising the money for a down payment can take years due to the cost of living and high rents.

The economic difference between owners and tenants is also considerable. Data from the Federal Reserve shows that in 2022 homeowners had an average net worth of $396,000; On the other hand, the tenants barely registered $10,400 dollars.

The study also detected differences depending on the region of the country. In expensive cities like New York, Boston, Seattle and several areas of California, people with fewer resources face greater obstacles to becoming homeowners. On the other hand, states in the Midwest and Southeast offer more affordable housing and better opportunities to build wealth, because prices are lower and there is a greater supply of homes.

This causes many families to face difficult decisions: live in cities with better salaries, but where buying a home seems impossible, or move to cheaper places where job opportunities are fewer.

“These are pretty difficult decisions,” Risch said. “It may mean that you have to live in a place that is not necessarily the one you want, that you have to rent for longer than you would like.”

Furthermore, researchers warn that the problem could get worse. Since 2021, home prices have risen faster than average wages in several regions of the country.

“House prices are growing faster than median incomes, and we see that when these prices increase at a faster rate, intergenerational housing inequality increases,” Risch said. “The situation could get worse.”

For workers who toil every day and who, regardless of their income, wondered why they couldn't own a home in the US, this study could be the confirmation that many might have intuited. However, as in any other analysis, it is only a parameter to better understand the circumstances experienced by a sector of society. This does not excuse anyone from improving financial education and planning, because this, like any other factor, does not determine anyone's future, it only presents a circumstance to overcome. There are success stories that achieve great things with less; It depends on each one.

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