In recent years, I’ve repeatedly heard the lament, “Housing is too expensive!” It’s become a chorus echoing through conversations with friends and family. As someone who managed to acquire investments at a discount during one of the most significant real estate booms in the past century and currently owns revenue-generating properties, it’s challenging for me to fully embrace this sentiment.

What’s even harder to swallow is the pervasive notion, encapsulated by the phrase “You will own nothing and be happy.” I’d argue that a more fitting slogan might be, “You will own nothing and complain about it for decades.” I’m surrounded by individuals who, despite earning substantial incomes—ranging from $100,000 to $350,000 annually—maintain that homeownership is an unattainable dream. Several factors contribute to this phenomenon, which I’d like to explore further.

1. Educational Shortcomings: The American education system, including higher education, has let down its students—those whose parents footed the bill with high taxes and those who will spend a lifetime repaying student loans. While the system excels at teaching students to excel in standardized tests, it falls short in equipping them with essential life skills like financial literacy. Many graduates are well-versed in accumulating debt but lack the knowledge required to save money or navigate the process of buying a home. This is not just a failure of schools or students but a cultural and parenting failure that has degraded over time.
2. Believing the Lie: I’ve encountered individuals earning $250,000 or more who genuinely believe they can’t afford a home. Their comfortable lifestyles and constant financial indulgence have created a financial hole. They’ve become so accustomed to their current comfort that making small adjustments to improve their financial situation hardly seems worthwhile. They’ll even question the wisdom of buying a home during periods of low interest rates, only to continue hesitating when rates rise.
3. Perceived Lack of Time: Many people claim they don’t have the time to consider buying a home. Paradoxically, we live in an era with more leisure time and easier access to information than ever before. Yet, the perception of busyness often prevents individuals from taking action to secure their financial future.
4. Dishonesty with Themselves: People aren’t necessarily lying, but they’ve become so comfortable and complacent that they’ve convinced themselves of certain financial falsehoods. When someone earning $200,000 over the past two years says, “It’s a bad time to buy,” or “I don’t have the time,” a decade can slip by with nothing to show for it. Buying a house is more accessible than ever with the right effort and mindset.
5. Addiction to Bad Debt: Our culture’s addiction to bad debt often begins in college. Students, enticed by the ease of obtaining student loans, credit cards, and other forms of debt, find themselves ensnared in a cycle of borrowing. This culture of addiction to debt has become so normalized that it’s challenging for individuals to help each other break free.

In conclusion, it’s clear that the education system, societal beliefs, lifestyle choices, and personal finance habits contribute to the struggle many Americans face in achieving homeownership. While there are success stories, such as those who prioritize financial responsibility and homeownership at a young age, there’s still a pervasive issue that needs to be addressed. It’s time for a cultural shift toward financial literacy and responsible financial management. Only then can more individuals realize the dream of homeownership that has become increasingly elusive for far too many.