Our economy forces young adults to kick their own debt down the road just like Congress does. Drowning in debt is the antithesis of the American Dream. The dream is not just to get a mortgage, but to pay off all debt in the foreseeable future and own a little swath of paradise. The dream is to ease the financial struggle for those yearning to be free of monthly payments (except a BritBox subscription. That’s forever) so they can use their resources for their own pursuits.
When President Donald Trump floated the idea of a 50-year home mortgage, my mind went to a simpler time: the 1990s. And after a bit of math, I realized how much harder it is for Millennials and Gen Z to achieve the trappings of American life and how pathetic it is that Congress is not spending all its time solving the economy.
Way back when R.E.M. and Stone Temple Pilots were on the radio (and we all listened to the radio) the longest term for a car loan was 48 months, that is, four years. I know because I sold cars at a Chrysler, Plymouth, Dodge dealer, and four years seemed like a long time to finance a Dodge Ram pick-up truck, especially for folks who liked to get into a newer model with low miles every few years. Ideally, buyers would have a nice down payment, a trade-in, and take out a two-year loan. Lenders didn’t want the auto repair costs of an older vehicle to compete with monthly payments.
But car costs and loan terms have grown. In 1993, the MSRP for a new Dodge Ram Pickup started around $10,000. Today a new, 2026 Ram Pickup truck starts at $41,000. That is, brace yourself: a 310 percent cost increase. Today no one would sneeze at a 5-7 year vehicle loan and it is possible to get a 96-month (8-year) car loan — a crazy long term considering vehicles depreciate.
The longer term comes with higher interest, and it is a consumer trap. Try to trade out of that loan before the term is up and you will be “upside down,” owing more than the car is worth. Your choices are to finance the balance on a new long loan or stick with the crappy car until it is paid off.
The good news is, unlike cars which lose value as they age, real estate increases in value, so once you pay off a home loan, you are sitting pretty. Except for property taxes. Those are forever.
The bad news is the same news: real estate increases in value. The median sale price of new homes sold in United States in 1993 was $125,000, but as of August 2025 that number jumped to $411,000, that is, an eye-popping 228 percent cost increase according to Federal Reserve data.
Sure, pay has gone up too. But barely. In 1993, the median household income was $63,000. As of September 2024, it was $84,000, an increase of 33 percent, Federal Reserve data shows. That is not nearly enough.
I keep thinking about 1993, because that is when I became a mother. My kids, now young adults, did not grow up wealthy. They know what flood pants are. It is when you’ve grown too tall for your pants’ length, but your mom can’t buy another pair just yet.
That is why, like so many young adults, they work hard and, somehow, they are making it work financially. But the climb is much steeper than it was for my generation, and it is hard to watch. Their dreams are curbed by bigger burdens of college loans than my generation ever faced; the low starting pay of an entry-level career; and housing priced into the stratosphere.
They will have to delay the simple pleasures of home ownership like painting walls their favorite color, buying a grill, building a backyard swing set, getting a dog, planting a garden, installing better siding — all a bit tough when renting. Something as simple as hanging a shelf means considering the landlord’s rules.
A 30-year mortgage on a $400,000 home is 360 months at $1,111, not counting taxes and insurance. Stretching payments out to 50 years (625 months) would lower that same home’s monthly payment to $640 a month. But it is an extra 20-years of interest payments, and a slower walk to meaningful home equity.
A 50-year mortgage, an eight-year car loan, and a forever college payment? Is this the best we can do for our young people?
After the longest ever government shutdown, it would be great if members of Congress, many of whom own several homes, would do something consequential to turn the tide for the many Americans whose lives are stunted by huge debts they don’t want and wage increases they don’t get. If Congress accomplishes just one thing — if it accomplishes anything at all — let it be solving the puzzle of the debt-to-income ratio.
Beth Brelje is an elections correspondent for The Federalist. She is an award-winning investigative journalist with decades of media experience.
