Ramit Sethi argues that young adults shouldn't feel pressured to buy a home. Housing prices are historically high, interest rates fluctuate, and NIMBYs limit new supply. He rents and invests the difference instead, saying it yields better returns and a better lifestyle.
Anybody here have parents who are constantly telling you, you need to buy a house? By your age, we already had a house and that was just on one income. I think that the way we talk about housing in America often makes young people feel way, way behind. The fact of the matter is the economy has changed dramatically. And while our parents were able to buy a single family house on one income, that is simply not realistic anymore. It's not just that interest rates are high. They've been higher in the past. It's that housing costs themselves are historically high, in part because our parents often are NIMBYs. They're the ones who do not want more housing to be built in our neighborhood. I want to encourage you on a couple of things. First of all, we just need to understand the price of houses is way higher than it has ever been before. It's actually not realistic to expect young people to be able to buy a house anymore. Second, you actually do not need to buy a house to become very wealthy. And this is something I want you to really understand. You are not a failure if you don't own a house. Own a house. I could buy a house tomorrow. I don't own one by choice. You know why? Because I carefully ran the numbers and my wife and I realized we can make way more money and have a better lifestyle if we rent and invest the difference. So I'm going to talk more about this, but let me know if you have ever felt guilty about not owning a house. What are the phrases you hear your family or your friends say about owning a house?
