The American dream still starts at home

OPINION:

Debates over immigration policy are such fixtures of our politics that we often overlook the reason we have them: because the United States is the most sought-after place on earth to build a future.

Cynics may sneer, but America’s unique ability to offer a path to possibility for all is a powerful draw for noncitizens.

At the heart of that path is homeownership. It’s simple, profoundly powerful and the focus of my professional life. However, it’s also in trouble all across our nation.

Homeownership is not only the cornerstone of the American dream but also one of the greatest economic and cultural engines in the world. More than a physical structure, a home is where life unfolds. It’s where we rest after long days, gather with family, raise our children and plan for the future. It’s a place to dream, to love, to build. It is the impact created by the neighbor next door and their neighbor next to them.

The benefits extend far beyond the front door. Statistically, homeownership is directly linked to stronger, safer communities. Homeowners are likelier to engage in local school systems, maintain their properties and contribute to neighborhood stability. Homeownership is also associated with lower crime rates and greater civic participation. These ripple effects compound over time, creating thriving communities where families can plant roots and grow.

One of the most beneficial impacts is financial. Homeownership remains one of the most consistent and accessible pathways to long-term generational wealth. To illustrate, if you were to duplicate two identical life paths — one as a renter and one as a homeowner, with all other variables held equal — the homeowner would close out life with over $100,000 more in net worth. That difference could fund a child’s education, seed a retirement account or serve as the down payment for the next generation’s first home. It’s the beginning of a legacy.

Yet for many Americans, this dream feels increasingly out of reach. What a contrast with Iceland, a country I’ve visited numerous times. In the striking beauty of Reykjavik, Iceland’s capital, homeownership rates exceed 80%, among the highest in the world. Across their cold, volcanic landscape and long winters, Icelanders have built a resilient, locally driven economy focused on stability, sustainability and long-term opportunity.

A key reason for this success? Policy. The Central Bank of Iceland has acted decisively in recent years to control inflation while preserving affordability, adjusting interest rates with precision and purpose to serve everyday Icelanders, not just large financial institutions.

Iceland’s proactive approach is in stark contrast with what we have seen in the United States, where the homeownership rate is 65%, the lowest level since 2019.

Democrats and Republicans rarely agree on much, but they are aligned on one critical point: that housing affordability is in crisis.

The number of real estate transactions in 2024 reached its lowest level in more than 40 years. Given year-to-date numbers, 2025 is tracking closely behind. This isn’t just a statistic; it’s a signal that something foundational is broken.

Although rising home prices certainly contribute to the challenge, the most significant roadblock for would-be homeowners is clear: high interest rates. Over the past two years, inflation-fueled rate hikes have put the brakes on one of the most critical sectors of our economy: residential real estate. Mortgage rates hovering around 6.5% and 6.75% have priced out millions of potential buyers, especially first-time homebuyers. The result is stagnation with fewer transactions, less mobility and widening wealth gaps.

President Trump recently said what many Americans across the political spectrum already know: “The time to lower interest rates is now.” He’s right. Lowering rates would move Wall Street and the 10-year bond yield downward, thus lowering mortgage rates, increasing affordability and allowing more families to qualify for mortgages and achieve homeownership. It would stimulate economic activity, boost consumer confidence, provide a much-needed jolt to local economies nationwide and even lower the national debt because of interest charges. After two years of financial strain, the American lower and middle classes, and all Americans, deserve relief and access to less expensive money.

Today, more Americans rent than own homes. That reality may seem unimaginable for a country built on the ideals of independence and self-determination. Yet it has happened, and it continues to escalate, with apartment buildings rising in nearly every metropolitan area. Look around your own city or town. We’re building for renters, not for owners. The consequences of that shift are profound and long-lasting.

As Iceland shows us, bold, timely action matters. Interest rate decisions are not abstract; they shape everyday lives. They determine whether a young couple can buy their first home, whether a veteran can put down roots and whether a single parent can invest in a better future for their children.

Iceland has the geysers and northern lights in its backyard; our American landscape is just as inviting. Our American spirit is hungry for a revival. The enduring belief that a better life begins with the freedom to call a place your own still lives in the hearts of millions. Homeownership is more than an economic transaction; it is a deeply human one.

That dream is still within reach, but we must act. The time to lower interest rates is now.

• Shane McCullar is CEO and operating principal of Keller Williams Metro Center and a trustee of The Heritage Foundation.