Yes, the Buddha recommended meditation for lay people, too. For example AN 5.176.
Nobody has to be a monk, but it undoubtedly helps. That said, there are many impressive lay disciples both in the suttas and in modern times. Householder Citta is a highly advanced lay disciple in the suttas. From recent times, Upasika Kee Nanayon was an amazing lay teacher to put it lightly.
One spiritual attainment that might be out of reach for lay devotees is arahantship as revealed in MN71. Jhanas and lower ariya attainments are possible for lay devotees.
The question of whether lay people can attain Jhanas has also been asked before