The American Dream is evolving. Earlier generations often bought homes and started families sooner, but with housing costs and living expenses rising, some younger Americans are choosing to be DINKs (dual-income, no kids).
But even as social media blows up of the carefree couples using their paychecks for vacations, friends and hobbies—their future may not be as financially liberating as they think. According to a new analysis from Pew Research Center, couples without kids have less wealth than couples that do.
One of the key reasons: homeownership. DINKS may have higher household incomes and more advanced degrees, but they own fewer homes, resulting in less equity. Having kids often push couples into homeownership: 71% of DINKs own a home, compared with 79% of dual-income couples with kids.
Age is also an important factor, as people tend to accumulate more wealth as they grow older. The survey found the median age of the older spouse in DINK couples is 36, compared to 43 among dual-income couples with kids.
The ages measured in the survey are mostly late millennials and early Gen X. Pew research describes DINK couples as married couples in which at least one spouse is 30 to 49 years old. Both spouses work and earn an income, and neither spouse has ever had any children.
When you zoom out to total wealth, which includes savings, investments, retirement accounts, and debt, the gap widens: DINKs have $214,700 in median wealth, while couples with kids have $361,500. DINKs have $165,000 in home equity, compared with $222,000 for couples with kids, but that’s just the housing piece of their finances.
Families with children see wealth rise, homeownership drops
Despite kids pushing adults to flock to the suburbs, current DINKs still may have children in the future. One of the biggest headwinds though, is that homeownership is becoming less attainable for younger Americans.
The average age of first-time home ownership has now jumped to a record of 40 years old, with high mortgage rates and soaring prices to blame, according to the National Association of Realtors. In comparison, about four years ago, the average age was just 33. When the survey was first conducted in 1981, the median age was 29.
Today, the median price of an existing home is $415,200, up more than 50% since 2019. Meanwhile, mortgage rates are roughly twice as high as they were in late 2021. When boomers bought their first homes in 1981, the median home price was just $68,900—though mortgage rates averaged nearly 16 percent at that time.
Older adults find wealth in homeownership
While younger generations struggle to scrape up payments on their first starter home, boomers bought homes when ownership was more affordable, leading them to acquiring the most of the nation’s wealth today.
Boomers have accumulated a collective net worth of $82 trillion—more than double that of Gen X ($42 trillion) and four times that of millennials ($16 trillion), according to data from Investopedia.
And the generational tension is deepening. Soaring home prices and limited supply on the market are locking younger buyers out. What’s more distressing for young folks is that boomers are choosing to hold on to their homes to pass on to their kids or age in place, reaping the benefits from increased home values.
Ultimately, the rise of DINKs says less about changing priorities and more about the economic realities reshaping what the American Dream looks like for a new generation.