The recent electoral successes of socialist-aligned candidates are prompting a renewed debate about how to counter their appeal. With Bernie Sanders-backed Abdul El-Sayed winning the Michigan Democratic Senate primary and democratic socialist Francesca Hong nearly capturing Wisconsin's gubernatorial primary, some observers argue that socialism is gaining traction because too many Americans feel excluded from capitalism's benefits. Zohran Mamdani, a Democratic Socialists of America (DSA) darling, already serves as mayor of New York City, the nation's largest metropolis.
According to a recent analysis, the root cause of socialism's rising popularity is not ideological conviction but a decline in actual ownership among everyday citizens. The national homeownership rate stands at 65%, down from a peak of 69.2% in 2004 and below the 25-year average. Among Americans under 35, the rate has fallen to just 35.2%, a drop of more than a percentage point from the previous year. The generational gap is stark: only 57% of Americans in their mid-30s own homes today, compared to 64% of their parents' generation at the same age. With 30-year mortgage rates recently climbing to 6.69%, the trend is unlikely to reverse soon.
The picture in financial markets is similarly uneven. While 62% of Americans own stock, that figure masks significant disparities. Only 28% of households earning under $50,000 own any stock, and the rate is just 42% for those with a high school education or less, and 44% for those aged 18 to 29. This ownership gap, the analysis argues, creates fertile ground for far-left policies. People with property are less likely to support government seizure, while those without ownership may view state intervention as more acceptable.
Policies like Mamdani's rent freeze in New York or Sanders' proposal for a 50% government stake in AI companies are seen as attempts to address symptoms rather than causes. A rent freeze may allow tenants to stay in apartments owned by others, but it can reduce housing supply and degrade building quality, making ownership even harder to achieve. Similarly, a government stake in AI companies might generate tax revenue but does little to give individuals a direct share in the success of high-growth industries.
The most effective response, according to the analysis, is not merely to critique socialism but to expand the number of homeowners and shareholders who have a vested interest in America's economic success. Founders and employees with a personal stake tend to think longer term, protect customers, watch costs, and weather downturns more effectively because the outcome is partly theirs. While not everyone can be a business owner, nearly everyone can aspire to homeownership.
To achieve this, the analysis suggests that business coalitions should push cities to permit more housing, shorten approval times, and remove regulatory barriers that drive up construction costs. Companies can complement these efforts with matched savings programs, closing-cost assistance, and financial coaching for first-time buyers. Additionally, as artificial intelligence threatens corporate headcounts and accelerates the emptying of downtown office buildings, converting surplus commercial space into residential units offers a practical solution. Such adaptive reuse avoids the embodied carbon of demolition and new construction, and since buildings account for nearly 37% of total U.S. energy consumption, it delivers both a housing and a climate win.
Widening the path to stock ownership is equally important. Broad-based equity compensation, including stock grants, profit-sharing, and employee stock ownership plans, can turn workers into partners in growth. Automatic retirement enrollment, meaningful employer matching, and access to low-cost diversified investments can give workers a stake in American prosperity even before they can afford a home, especially if those investments are tied to high-growth fields like artificial intelligence or clean energy.
None of this requires turning companies into charities. It is capitalism with aligned incentives: workers who accumulate assets, communities that keep their employers, and a free-enterprise system defended by people protecting something they actually own. The DSA sells government control because too many Americans believe the private economy has no place for them. The strongest defense of capitalism, the analysis concludes, is opening a credible path for people to not only find their place in the economy but to own it.