Will I Ever Be Able To Buy a House? The Realistic Answer

Buying a house used to be the American dream. A place to call your own, with a big backyard and a gorgeous patio…maybe even an outdoor pool.

For decades, property ownership was seen as the ultimate box to check as an adult. And you can’t tell me that you haven’t snuck a peek at the homes on shows like “Selling Sunset” and thought to yourself: Life. Goals.

And yet, for millions of young Americans, the dream of owning a house is just that: a dream.

Along with a six-figure salary, owning a home is quickly becoming a relic of the past. It’s a goal inching further and further out of reach thanks to soaring home prices, rising inflation, and the increased cost of living. 

We have to save longer and hustle harder to have enough money for a down payment. Then when we do get it, we have to commit to the 30 years of repayments and responsibilities that come with having your own property.

 

If you’re wondering, “Will I ever be able to buy a house?”, you’re not alone. It’s a fair question in today’s world. And underneath that question is another one that’s even trickier to answer: “If I can buy a home, is it worth it?”

Below, I’m going to run through the considerations I’ve encountered while doing some solid soul-searching and number-crunching, to help you figure out whether it’s the best choice for you. And if owning a house doesn’t feel right, don’t panic—we’ll explore other options that can help you design a happy, secure future, homeowner or not.

 

Why are our attitudes changing towards home ownership?

Homeownership was a huge deal back when I was a kid. To some degree, it still is today. 

When you’re fresh out of school or just starting a new job, owning your own home can feel like one of the biggest milestones of adulthood. However, in recent years, the question has turned from when you plan to buy a home to if you can afford to buy a home.

Let’s face it: houses don’t come cheap these days.

Though housing prices have been steadily rising for some time, the global pandemic caused them to skyrocket—and there’s no sign of them coming down. 

This chart from Trading Economics, using Census Bureau data, shows just how extreme the change in average house prices in the United States has been over the last decade:

On top of this, life has become more expensive since 2020, beyond just house prices. Daily necessities like groceries, gas, and heating are on the rise, which makes it challenging to squirrel away enough for a down payment.

 

Will I ever be able to buy a house? How to figure it out

If you’re looking at the graphic above and wondering if you’ll ever be able to afford a house, don’t write it off just yet. 

The truth is, whether or not you’ll be able to buy a home depends on a number of factors, some of which are in your control, and others that are less predictable.

 

Your income and savings trajectory

Your current income isn’t the only thing that matters—it’s also about where your career is headed. If you’re in a field with strong opportunities for growth or you’re developing high-value skills, your future earning power might be higher than you think. Plus, you don’t necessarily need a six-figure salary to buy a house (though it definitely helps). The key is having steady income growth and good saving habits.

That said, don’t get discouraged if you’re not making bank right now. Later in this article, I’ll share resources to help you grow your income faster, so you can purchase property sooner.

 

Market conditions and timing

The housing market is volatile, and I’m not going to try to predict where it’s going in the coming months and years. 

But there are some things we do know: Interest rates have a huge impact on what you can afford, and they change based on economic conditions. When rates go up, your buying power goes down. The flip side is that higher rates sometimes cool down the market and bring prices down. (Fingers crossed that happens again sometime soon.) 

If you can’t afford to buy in today’s market, it doesn’t mean you’ll never be able to buy. If you budget and set aside money, you’ll be ready to jump if and when the housing market turns in your favor. (The worst-case scenario is that you use those savings for something else that’s equally important!)

 

Location, location, location

Though housing prices are up across the board in the United States, there are certain places where housing prices are far more affordable than others. 

You may not be able to afford a home in New York or San Francisco or Miami. But there are other smaller cities that still have plenty to offer in terms of lifestyle, community, and culture—without the exorbitant housing prices of major metros. 

US News & World Report released their 2024-2025 list of the best affordable places to live in the US, including average housing prices that may surprise you. 

For example, in Greenbay, Wisconsin, the medium home price is $180,066, and in Wichita, Kansas, it’s even lower at $173,799. Compare that to Boston, Seattle, or D.C., where median housing prices are well over $600,000. 

These smaller cities and towns are only likely to increase in population and value over the coming years—that translates to good investments, even if you don’t plan to live in the house or area long-term.

 

The type and size of home

Housing prices vary immensely depending on what type of home you buy. 

Maybe that six-bedroom, five-bathroom house with the built-in sauna is out of reach. That doesn’t mean you can’t find a different home that is more affordable.

Single-family homes are typically the most expensive type of home to buy. If you want to own property but can’t afford to buy an entire home, think about purchasing an apartment, condo, or multi-family home. These are typically more affordable, and often require less work (and money) to maintain them. 

The state of the home you purchase also will impact whether or not you can afford a home. You may opt to purchase a home that has a lower sale price, and invest the money you would have spent on a more expensive home on repairs and updates. However, unless you’re very handy and can do most of it yourself, the costs of renovations and upgrades can quickly become more expensive, so be sure to do thorough research before you purchase a fixer-upper.

 

Family support and inheritance

Family wealth can be a significant factor in homebuying ability. Some people receive help with down payments from parents who’ve been saving since their childhood, while others may have a future inheritance that could contribute to homeownership.

This option isn’t available to everyone, and it shouldn’t be the primary plan. Building independent financial stability is an important part of being an adult, whether family support is available or not. The strategies outlined in this article can help make homeownership possible through your own efforts, regardless of inherited wealth.

 

Is home ownership right for you?

As you think about home ownership, you may be wondering if it’s even the right path for you. It’s a lot of money and a lot of risk, and maybe you’d rather spend that money on a different lifestyle—one that allows for more travel and perhaps more disposable income. 

If you’re still on the fence, here are some of the biggest pros and cons to keep in mind when evaluating whether home ownership is right for you.

 

Pro: You’re your own landlord

One of the best parts of owning a home is that you’re your own landlord. 

You can paint the walls any color you choose. Renovate the house to your exact preferences. Get a pet. Even break a wall (although I wouldn’t recommend it). Because it’s your house, you don’t have to answer to anyone except yourself. 

For a lifelong renter, this level of control is an absolute dream compared to living in someone else’s home. You don’t have to ask anyone for permission to make changes and can make your place truly feel like it’s yours.

 

Con: You’re your own landlord

Being your own landlord can be great…but it can also suck. Unlike in a rental, whenever something goes wrong or needs repairing, it falls to you and you alone to fix it. You have to cover the costs of any maintenance and upkeep in your home—costs that can significantly add up over time. 

If you’re in an apartment complex, you may also find yourself having to attend meetings and vote on issues as part of the building’s owners association.

 

Pro: It can be a good long-term investment

Property isn’t a bulletproof investment, but it sure is less volatile than investing in crypto. Over time, a significant portion of homes will increase in value, which makes a house a viable option for storing and growing your wealth.

Case in point: in our lifetime, the price of property has trended upwards—and despite a few blips, most Americans still believe it’s the most dependable way to invest their money.

With that being said…

 

Con: Property isn’t a “sure thing”

If you’re anything like me, you’ve probably come across other people telling you to buy property because “it can only increase in value.” This is true for a large portion of people, but no investment in life is a sure thing—not even property. 

The housing market is complex, and many factors can affect the sale price of your home, so you need to do your research before you buy. With the Fed increasing interest rates, you also need to be aware that your payments might increase over time too.

 

Pro: You have more stability

There’s no way around it: Owning a home definitely gives you more stability. As long as you do your research and make your payments, you’ll always have a roof over your head. Best of all, you won’t need to uproot your life if your landlord decides they want to sell the place.

 

Con: You have less freedom

A mortgage comes with stability, but you don’t get that stability for free. Unless you can afford to buy your home outright, you’ll constantly have a mortgage to pay—which means more forward planning, sacrifices, and adjustments. 

I, for one, know that if I had bought a house in my twenties, I might not have had the courage to  travel the world, ditch my full-time job to pursue freelancing, or to have lived in countries like China, Vietnam, and New Zealand.

 

Other money goals to aim for instead

Not sure if you want to own a home? I hear you—and that’s completely okay. There are no rules, and you can take as much time as you need to make up your mind. And if home ownership isn’t for you, there are still plenty of financial targets you can aim for.

Whether you don’t want to own a home at the moment or never want to own a home, hitting these goals will help you achieve some degree of financial freedom and put you in the most stable position for the future.

 

Get an emergency fund

One of the most predictable things about life is that it’s unpredictable. 

Your tire blows out. You need costly medical treatment. You need to make an emergency trip home. All of these unexpected events can make a huge dent in your financial stability and even cause you to go into debt (which can create a whole bundle of headaches in the future). 

This is where having a stash of emergency money means the difference between freaking out and rolling with the punches. 

Before you start investing or building a business, you need to have a safety net to fall back on. Aim to have the equivalent of three to six months worth of earnings in your emergency fund. It should be enough to cover you if something unpredictable happens.

Check out our full guide on how to build an emergency fund.

 

Invest your money

Savings are valuable, but unless you have a super-secret bank account that I’ve never heard of, chances are you’re only storing your wealth with savings—not growing it. That’s where investing wisely can help you achieve financial security and stability. 

The key word here is wisely. 

We’re not talking about pouring all of your income into as many NFTs as possible or jumping on a get-rich-quick scheme. Your aim should be to diversify your portfolio and invest in stocks that will offer steady growth over a long period of time (think five, 10, or even 20 years).

I know it doesn’t sound super glamorous. But trust me: if you start now, your future self will thank you every single day for the rest of your life.

For more guidance on investing and saving money, check out these resources:

 

Start a business or a side hustle

The biggest investment you can make is to invest in yourself.

It’s cheesy, sure—but it’s true. Not only is building something of your own insanely rewarding, but it also gives you valuable skills that you may not have gained otherwise. You’ll learn about managing finances even if you’re not a finance person, understand how to sell products even if you’re not a salesperson, and build confidence in your own skills and abilities. 

Plus, if you create a successful business (or an empire👑), you’ll be well on your way to owning a home if you do eventually want one.

Not sure if you have what it takes to turn your hobby into your career? Try to do it on the side first, either as a part-time gig on weekends or in the evenings. This is how I started freelancing before making it my full-time gig.

We have so many resources for running a side hustle, so here are some great places to start:

 

And if you do want to buy a house, what can you do?

Everything out there may feel like it’s working against you, but don’t give up! Despite how daunting the task at hand might seem, owning a home is still achievable with some adjustments in your spending and lifestyle habits.

 

Figure out how much you need to save

Hop on to a mortgage calculator and see the amount you need to save for a down payment on your future home. These calculators are incredibly handy when it comes to understanding how much you can afford, how much your payments will be, and how long it’ll take to pay off your loan. When you know the destination, it’s easier to work backward to figure out how to get there.

Once you have that figure, it’s time to build it into your budget. Figure out how much you need to set aside each month in order to reach your goal, and start saving. 

If you don’t have a budget, here’s an easy template you can use to start. (And be sure to check out our full budgeting guide.)

 

Cut back on your debts

Even if you do save enough for a home loan, you won’t be able to borrow as much if you have a ton of existing debt. Banks and other financial institutions look at your credit rating and the amount you owe when deciding how much you’ll be able to borrow.

If you’re earning $6,000 a month and making $1,000 in loan payments, a lender will see your income as $5,000 and adjust the amount you can borrow to suit.

Related: How to Pay Off Student Loans Fast: 10 Methods to Try

Here’s another tip: if you’re gearing up to buy a house, get rid of as many credit cards as possible. A bank doesn’t only look at how much you owe on your credit card, because that money is always there and ready for you to access.

Instead, they assume you are going to max out your credit card and adjust your income based on that. If you have an annual income of $75,000 and an $8,000 credit card limit, then the bank will see your projected income as $67,000—not $75,000.

 

Make more money

The most effective method to fast-track your goal of saving for a down payment is to generate more income. This additional money can go directly into your savings account and help shave months or years off your goal of owning a home.

So how do you earn more? Find a side hustle to gain some extra income. This is also a fantastic opportunity to explore a potential business idea that you’ve always had brewing in the background, like a consulting business or finally starting that Twitch stream.

 

Remember: owning a home is just one option in your life

If you want to own a home, then go for it. If you don’t, that’s okay too.

Owning a home isn’t a necessity, and there are plenty of other money goals to reach for instead. The key thing to keep in mind is that no matter what you choose, you need to be smart about your financial choices.

When you do that, you’ll be able to rest easy knowing you’ve put yourself in the best position possible for the future.