If you want to be financially independent at a young age, don’t buy a house, serial investor says. Home ownership is just an ‘expensive indulgence’

Core Insights - Home ownership is increasingly out of reach for younger Americans due to high home prices, which are 50% higher than pre-pandemic levels, and stubbornly high mortgage rates around 6% [1] - Renting may be a more financially viable option than home ownership, contrary to traditional beliefs about the American Dream [2][3] Financial Implications - JL Collins argues that buying a home significantly inflates living costs due to hidden expenses such as insurance, repairs, and maintenance, making home ownership more expensive in the long run [3][5] - A recent LendingTree study indicates that homeowners pay 36.9% more monthly on mortgage payments compared to renters, with median monthly gross rent at $1,487 and median monthly housing costs for homeowners at $2,035, resulting in a difference of nearly $550 per month or over $6,500 annually [4] Behavioral Insights - The tendency for individuals to purchase the most expensive home they can afford leads to financial strain, as they often borrow the maximum amount a bank is willing to lend [5] - Home ownership is characterized as an "expensive indulgence," with additional costs such as furniture, appliances, landscaping, taxes, and maintenance that extend beyond the mortgage payment [5][6]