In the past decade, housing prices across the globe have soared to unprecedented heights. This meteoric rise in property values might be good news for real estate moguls and investors, but it spells a dire situation for the next generation of potential homeowners. Today’s young adults are facing challenges that previous generations could hardly have imagined.

Firstly, stagnant wages and a robust real estate market have combined to create a situation in which even dual-income households struggle to afford the down payment on a home. In many major cities, the median home price is now upwards of seven times the average young professional’s annual income. This gap between earnings and housing costs has widened, making it nearly impossible for large portions of this demographic to secure property through traditional means.

Furthermore, the impact of student debt cannot be overlooked. Many young people are emerging from higher education burdened with significant loans which further diminish their purchasing power. The debt-to-income ratio for many within this age bracket is alarmingly high, meaning that securing a mortgage is often out of reach.

This combination of hefty student loans and exorbitant real estate prices doesn’t only mean fewer homeowners; it also means that young adults are delaying other life milestones. Starting families and investing in businesses are often sidelined because financial resources are tied up with rent or saving for an elusive home down payment.

The rental market offers no solace either; as demand outstrips supply, rental prices have increased sharply. This means that saving for future home ownership becomes even more challenging as more income is directed towards meeting high monthly rents, leaving little to set aside.

Finally, gentrification and urban renewal projects in many cities have had the unintended consequence of displacing lower-income tenants in favor of higher-income residents or commercial interests. This further reduces the availability of affordable housing and pushes young people out into less desirable or farther-flung neighborhoods.

All these factors contribute to a grim outlook for those hoping to own their slice of the proverbial pie: a home to call their own. Policy makers must attend to these issues urgently and innovatively if they wish to ensure that the dream of property ownership does not become a vestige of the past, accessible only to a privileged few. Only with concerted effort can we hope to thaw out an increasingly frosty prospect for our next generation’s ability to thrive, settle down, and own a piece of where they live.