High Housing Costs Push Americans to Crypto and Luxury

TL;DR

Economists argue fading homeownership hopes due to high US housing costs lead renters to spend more, work less, and pick riskier investments like crypto.
Millennials expecting to rent forever nearly doubled to 25% in Apartment List's 2022 survey from 13% in 2018; 42% of adults in 2024 Harris Poll say hard work won't buy a loved home.
These shifts compound over time, widening wealth gaps and hurting long-term savings for younger generations.

The story at a glance

Bloomberg Businessweek features economists Seung Hyeong Lee and Younggeun Yoo examining how unaffordable housing pushes Americans, especially younger ones, to change consumption, work, and investment habits. Home prices outpace wages, making ownership feel out of reach for many. The piece draws on their research model and surveys, reported amid ongoing US housing affordability debates in early 2026.[[1]](https://www.bloomberg.com/news/features/2026-02-12/high-housing-costs-may-be-driving-americans-toward-crypto-luxury-goods)

Key points

Homeownership provides stability, credit-building, and equity but has grown unattainable as prices rise faster than wages.
In Apartment List's 2022 millennial survey, share expecting to rent forever rose to nearly 25% from 13% in 2018.[[1]](https://www.bloomberg.com/news/features/2026-02-12/high-housing-costs-may-be-driving-americans-toward-crypto-luxury-goods)
2024 Harris Poll: 42% of US adults, nearly half of Gen Z, agree "No matter how hard I work, I will never be able to afford a home I really love."[[1]](https://www.bloomberg.com/news/features/2026-02-12/high-housing-costs-may-be-driving-americans-toward-crypto-luxury-goods)
Economists' life-cycle model projects 1990s-born cohort will retire with homeownership 9.6 points lower than parents' generation.
As perceived homeownership odds fall, people consume more relative to wealth, reduce work effort, and shift to riskier assets like cryptocurrencies.[[1]](https://www.bloomberg.com/news/features/2026-02-12/high-housing-costs-may-be-driving-americans-toward-crypto-luxury-goods)
Low-wealth renters already show these patterns empirically, compounding wealth inequality over lifetimes.

Details and context

The article bases its analysis on a calibrated life-cycle model matched to US data, plus empirical checks on renter behavior. It highlights how dashed expectations create a "giving-up threshold," prompting systematic shifts that reduce lifetime wealth accumulation.[[2]](https://kevinerdmann.substack.com/p/americans-giving-up-on-homeownership)

Model suggests targeted subsidies lifting young renters above this threshold boost welfare 3.2 times more than uniform aid, 10.3 times more than aid to bottom 10% wealth group.
These also raise homeownership rates, work effort, and cut social safety net use, per the economists' projections.

US housing affordability has worsened for years, with prices up far more than wages; the piece ties this to broader economic effects beyond just stalled dreams.[[1]](https://www.bloomberg.com/news/features/2026-02-12/high-housing-costs-may-be-driving-americans-toward-crypto-luxury-goods)

Key quotes

"No matter how hard I work, I will never be able to afford a home I really love." – 42% of US adults in 2024 Harris Poll, nearly half of Gen Z.[[1]](https://www.bloomberg.com/news/features/2026-02-12/high-housing-costs-may-be-driving-americans-toward-crypto-luxury-goods)

"We found that as individuals’ perceived likelihood of homeownership diminishes, they systematically shift their behavior: They consume more relative to their wealth, stop working as hard and choose riskier investments such as cryptocurrencies." – Economists Seung Hyeong Lee and Younggeun Yoo.[[1]](https://www.bloomberg.com/news/features/2026-02-12/high-housing-costs-may-be-driving-americans-toward-crypto-luxury-goods)

Why it matters

Unaffordable housing may reshape the US economy by curbing saving, labor supply, and stable wealth-building for millions, especially younger renters. This could mean less retirement security for individuals, wider inequality, and lower tax revenue from reduced work and growth. Watch policy responses like targeted subsidies or housing supply boosts, though their scale and impact remain uncertain.