like is best used to compare nouns but in this case the verb "is" is used

Also, the current situation is compared to something in the past so we need "was" when referring to the goal of earlier generati

Hence E

Hope that helps

According to a recent poll, owning and living in a freestanding house on its own land is still a goal of a majority of young adults, like that (i.e. goal) of earlier generations. Then what is the wrong in the sentence?

To maintain parallelism we need a verb corresponding to "is" and that too in past tense

36. According to a recent poll, owning and living in a freestanding house on its own land is still a goal of a majority of young adults, like that of earlier generations.
(A) like that of earlier generations
(B) as that for earlier generations
(C) just as earlier generations did
(D) as have earlier generations
(E) as it was of earlier generations

As per MGMAT, "that" is used to indicate a "New Copy" or copies of the antecedent. For example,
"The money spent by her parents is less than THAT spent by her children"
Note that the pots of money are not the same.

In this question, that refers to the goal, which is the same for this generation and the earlier. So we can reject (A), (B).
In (C) "did" does not make sense. (D) sounds wrong for obvious reasons.

Only option left is (E).

X is still a goal of YA, as it (X) was of EG

X = owning and living in a freestanding house on its own land