Is the American Dream Still Relevant in 2025? | Cockatoo

The American Dream has long been a global symbol of prosperity, upward mobility, and the promise that hard work can lead to a better life. But as we step into 2025, both Americans and Australians are re-evaluating what this dream means. While the phrase conjures visions of home ownership and financial stability, the reality on the ground is shifting—especially in the context of soaring property prices, wage stagnation, and evolving cultural values. So, what is the American Dream today, and does it still influence the financial aspirations of Australians?

The Shifting Sands of the American Dream

Historically, the American Dream was defined by a simple formula: secure a stable job, buy a home, and provide a better future for your children. But in 2025, the conversation in the US is dominated by economic pressures familiar to many Australians—skyrocketing housing costs, student debt burdens, and inflation outpacing wage growth.

• Home ownership rates in the US have fallen to their lowest since 1996, according to the 2025 Federal Housing Survey.

• Millennials and Gen Z are increasingly viewing renting, investing, or even co-living as practical alternatives to buying property.

• Debt-to-income ratios have reached record highs, with over 60% of young adults in the US carrying some form of educational or consumer debt.

Americans are now redefining success in less material terms—prioritising flexibility, experiences, and personal wellbeing over traditional markers of wealth. This reimagining is echoed in Australia, where similar economic headwinds are shaping how we think about financial security and the ‘Great Australian Dream’.

What the American Dream Means for Australians

Australia’s own version of the Dream has always borrowed a little from its American cousin: home ownership, social mobility, and the belief that each generation should do better than the last. But the parallels are now more pronounced, as both countries grapple with a cost-of-living crisis and widening wealth gaps.

• Australian property prices surged again in early 2025, with CoreLogic data showing a 7.2% annual rise in capital city values, squeezing out first-time buyers.

• Wages growth remains sluggish, tracking below inflation for the third consecutive year, according to the ABS.

• Policy updates in 2025 include the expansion of the Help to Buy scheme, designed to assist low and middle-income Australians into the property market, and an increased focus on build-to-rent developments.

These challenges are forcing many Australians to reconsider what financial success looks like. For some, that means prioritising superannuation and investment portfolios over property. For others, it’s about building flexibility into their careers—whether through side hustles, remote work, or entrepreneurial ventures.

Learning from the American Experience: Rethinking Our Dreams

The American Dream’s evolution offers valuable lessons for Australians. The idea that anyone can succeed through hard work alone is being tempered by a recognition of structural barriers—like access to affordable housing and quality education. In 2025, both Americans and Australians are demanding more from their policymakers and employers, advocating for systemic change rather than relying solely on individual hustle.

For Australian households, this could mean:

• Embracing financial diversification: More Australians are investing in shares, ETFs, and managed funds, seeking to grow wealth outside of the property market.

• Prioritising wellbeing: Flexible work arrangements and work-life balance are now core financial goals, not just nice-to-haves.

• Championing policy innovation: There is growing support for reforms like rent-to-own schemes, expanded social housing, and targeted first-home buyer assistance.

Ultimately, the American Dream in 2025 is less about a white picket fence and more about resilience, adaptability, and finding purpose in an unpredictable world. For Australians, this is a moment to define our own dreams—rooted in the realities of today’s economy, but open to new possibilities.