Skimm Money: Is It Even Worth It to Buy a Home Anymore?

How the news affects your finances.

Is It Even Worth It to Buy a Home Anymore?

Is the white picket fence as passé as the pension and 40-hour work week? About 75% of Americans see homeownership as the “American dream,” according to a 2023 Bankrate survey — but rising home values and high interest rates have made that goal feel increasingly unaffordable and the dream improbable for many. Current metrics show that homes may actually be an “overvalued” asset. The changing dynamics (see: whiplash from historically low interest rates in 2021 to the sky-high numbers we’re living with today) have also affected buyer and seller mindsets. “Consumers who haven’t yet purchased a home are probably exhausted,” says John Walkup, cofounder of UrbanDigs, a real-estate data analytics company. “And there’s not a lot of incentive for sellers. Supply and demand are locked up, and it feels like we’re waiting for a catalyst [to open the market back up].”

In the meantime, some aspiring homeowners are getting creative — buying with friends, reimagining “starter homes” as forever homes, opting for “multigenerational living,” or “rentvesting.” Still, others are just taking the plunge and buying a home despite high interest rates or considering what life might look like as a “forever renter.” No matter where your funds and feelings stand on the topic, here’s how to navigate the increasingly complex housing environment.

Your move: 

• Take stock of your life goals. Times have changed since Mom and Dad bought a house. Getting married later, staying child-free or delaying having kids, and frequently job-hopping all make homeownership feel less urgent than it may have been for previous generations. On the flipside, investing your money and increasing your liquid assets outside of real estate is easier than ever.

• Put your money to work. If buying a home is more of a distant or TBD goal, consider consulting with a professional about how and where to invest your money to grow your wealth. (Psst: here are some smart money moves to consider if you’re planning to rent for the foreseeable future.)

• Buy when your time is right. Don’t try to “time the market” — it doesn’t always work to your advantage, says Walkup. High interest rates can increase competition among buyers due to lack of inventory, so you may end up paying well beyond the asking price. In other scenarios, sellers looking to offload their property in a difficult market may be willing to make concessions.

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PS: Rent prices are still sky-high. If your landlord is trying to raise your rent again, here’s how to negotiate for a rate you both can live with.

We asked you to vote on a question you’d like answered. The winner was:

What should be on a home inspection checklist?

FEATURED EXPERT:

Mark Goodman

President, American Society of Home Inspectors

Home inspectors follow a standard list of items that are set either by your state or by an association like the American Society of Home Inspectors (ASHI), says Mark Goodman, ASHI’s president. This includes checking out the roof, plumbing, heating and cooling, insulation and ventilation.

You should also know that a standard home inspection doesn’t cover everything. So ask your real estate agent if you need a specialist to look into things like pests, air quality (including mold and radon), and sewer lines, says Goodman.

It’s best to attend the home inspection if possible, so you can ask questions in real time, he adds. And always read the inspector’s report. Look for words like “action” or “unsatisfactory” for things that should be fixed ASAP, and “consideration” or “maintenance” for things that may need future repairs. Lastly, know when to push. If an area was not inspected, request that the seller make adjustments to allow your inspector into those spaces to ensure you walk away with a thorough report.

Download our free printable and savable home inspection checklist to take with you during your next visit.

One act of financial self-care you can do in five minutes.

Ask for a rebate on your recent home purchase.

Wait, you can actually get money back after buying a home? Potentially. A homebuyer rebate (also known as a commission rebate) is a financial incentive that a buyer’s real estate agent may offer some clients to get you to work with them. Before you sign a contract to work with a specific agent, you can make an agreement for them to give you a piece of their commission. For example, if your real estate agent gets a 3% commission when you buy a house, you could negotiate to get 0.5% of that figure back as a closing credit. Reddit can be a valuable source of intel as to what sort of deals real estate agents will actually accept.