The price of the American Dream has soared to over $5.3 million this year – almost $2 million more than just a few years ago, according to a new Investopedia report.
The eye-watering sum represents the estimated lifetime tab for typical American milestones, including paying for a wedding, paying for healthcare and retirement, raising two kids and putting them through college, buying new cars and owning a home.
The dream cost $5 million last year, $4.4 million in 2024 and just $3.4 million in 2023, the investment site estimated.
It’s now outpacing Americans’ paychecks, the report found.
While the cost of achieving the dream rose 4% over the past year, private-sector wages and salaries grew a measly 3% during the same period, according to Investopedia’s analysis of Bureau of Labor statistics.
The widening gap is bad news for the average full-time worker with a bachelor’s degree, who can expect to earn a median of just $3.6 million over a career spanning from age 25 to 64 – nearly $2 million short of the “have it all” American dream, per the report.
Owning and maintaining a home is the single biggest expense, totaling $1.28 million today – up from the $1.18 million last year, Investopedia.
Keeping two new-model cars — replaced every five years — is expected to set one back nearly $1.21 million over a lifetime, while retirement will likely cost roughly the same amount, Investopedia found.
The smaller milestones aren’t exactly cheap either.
In 2026, the average American is expected to shell out $38,800 on a wedding; $40,772 to take care of a cat and a dog and $186,999 on annual vacations over a lifetime.
These figures saw smaller increases compared to last year.
But the cost of raising two kids and putting them through college skyrocketed 9% in a single year – jumping from $876,000 in 2025 to $954,000 today – thanks to pricier childcare and in-state higher-ed tuition.
Healthcare was the only category that got slightly cheaper in 2026, with lifetime costs estimated at $413,000, down slightly from $414,000 in 2025. The dip came after people ages 22 to 85 reported spending about $900 less, on average, on healthcare over the past year, according to the report.
Still, hope in the American Dream is alive and well – with nearly seven in 10 US adults saying they believe they will personally achieve it, according to the results of a June Gallup poll.
When asked what comes to mind when they think of the American Dream, the most respondents – 33% – picked the option: “Life, liberty and the pursuit of happiness.”
But a close second in the poll was financial security, or “owning a home, having a good-paying job with benefits and being able to afford some added comforts in addition to the necessities,” the survey found.
