Ever wonder why so many smart Americans suddenly stopped buying homes? In this video, we break down what’s really going on behind skyrocketing prices, high interest rates, and a housing market that doesn’t make sense anymore. This isn’t about fear — it’s about math, timing, and seeing the system clearly. We’ll compare renting vs buying, explain what changed, and why waiting can actually be the smarter move right now. If you’re confused about the housing market, this will clear things up fast. Animation is created by Bright Side. ---------------------------------------------------------------------------------------- Music from TheSoul Sound: https://thesoul-sound.com/
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01:34Meanwhile, home prices were sprinting ahead, and mortgage rates were climbing right behind them.
01:41Every listing Jordan clicked on felt like a reminder.
01:44The dream was moving faster than he could chase it.
01:48And after a while, it didn't just feel discouraging.
01:51It felt impossible.
01:52That's when the frustration sets in.
01:57The burnout.
01:58The quiet realization that the American dream you were promised might not be meant for you at all.
02:04Mortgages were designed for a world that barely exists anymore.
02:08A 20th century economy where people stayed in the same job for decades.
02:13Interest rates were gentle, and the population kept expanding.
02:17Back then, buying a home felt like a stable, predictable life step.
02:21But after the 2008 crash, and especially after 2020, the ground shifted.
02:27Wages stopped keeping up.
02:30Interest rates spiked.
02:31Housing supply collapsed.
02:34And yet the mortgage system?
02:35It stayed frozen in time, like it didn't get the memo.
02:39What used to be a safe bet slowly morphed into one of the riskiest financial contracts most people will ever sign.
02:46People still feel pressured to do it, even if they can barely make the math work.
02:52And here's the wild part.
02:53Even with record high prices, millions of Americans are still hanging on to that dream.
03:00But for the people who did manage to buy, the dream doesn't always look dreamy up close.
03:06A new survey shows nearly 7 out of 10 homeowners actually regret buying their home because the financial stress is so much heavier than they expected.
03:15All the surprise costs, repairs, taxes, insurance, stack up fast, almost aggressively.
03:23A study from Clever Real Estate breaks it down.
03:28In 2025, owning a home isn't just expensive, it's shockingly expensive.
03:33Beyond the mortgage, the average homeowner is shelling out about $24,500 a year.
03:39That's more than $2,000 every single month just for utilities, maintenance, repairs, property taxes, insurance.
03:48The part nobody puts on the real estate brochure.
03:51And utilities alone are the biggest hit right after the mortgage itself.
03:56And if you live in a homeowners association, the complications don't stop there.
04:01It gets even worse.
04:02HOA owners pay roughly $3,000 more every year, pushing their total annual costs to nearly $28,000.
04:11$28,000.
04:14Just to keep a roof over their head.
04:17The most unsettling part?
04:19Almost nobody saw it coming.
04:20More than 8 out of 10 homeowners say the real costs blindsided them.
04:25Like they signed up for one life and woke up in another.
04:30And nearly half now admit something they never thought they'd say out loud.
04:35Renting might actually be the easier path.
04:38A real investment pays you back.
04:41Your house doesn't do that.
04:43In the end, owning a home ends up costing way more than just the price you bought it for.
04:49When you look at how much you really spend over the years,
04:52any profit you could potentially make from selling it can disappear fast.
04:57Let's figure out why.
04:59The first years of a mortgage are brutal.
05:02Most of your payment disappears into interest, not the home itself.
05:05And that money?
05:06Gone forever.
05:10Add in closing costs, agent fees, and other charges,
05:13and you can lose almost 10% of a home's value just buying or selling it.
05:18Then come the repairs, the maintenance, the surprise breakdowns.
05:24Homeowners often spend 1-4% of their home's value every year just keeping it livable.
05:30And property taxes and insurance never stop climbing.
05:34Take Jess.
05:35She thought buying a home in 2019 was the smart move.
05:39A cozy three-bedroom in the suburbs, a manageable mortgage, a sense of pride.
05:44But reality hit fast.
05:46Taxes went up.
05:48Insurance went up.
05:49The roof leaked.
05:50The HVAC got broken.
05:52Even routine maintenance cost more than she ever budgeted for.
05:56Utilities and HOA fees piled on top.
05:59Before long, Jess felt her house draining her bank account faster than she could refill it.
06:05Some days, she wishes she'd rented a little longer or saved a lot more.
06:11Because when the costs rise faster than your income, owning a home stops being a dream and starts feeling like a trap.
06:18This hits millennials the hardest.
06:21Some of them only recently bought their first home, just in time for the costs to spiral.
06:28Nearly 1 in 4 millennial homeowners say the financial strain is so intense, they actually wish they could go back to renting.
06:35That's more than double the share of boomers who feel the same.
06:40And Gen X, they're struggling too.
06:43About 25% say they'd undo their purchase if they could.
06:48Now, how about we move on to a different financial matter familiar to literally everyone.
06:54Yep, I'm talking about credit cards.
06:56In the United States, a single number, your credit score, can define a person's financial life.
07:04It affects the ability to rent an apartment, buy a house, take out a car loan, or even qualify for basic services.
07:13Many Americans can be approved for huge loans, like a million-dollar mortgage, while still struggling to pay for daily expenses.
07:20The thing is, credit cards are introduced to young Americans very early, often in college.
07:27Banks encourage students to get cards with small limits to start building a credit history.
07:32But most schools don't teach students how to manage credit, interest rates, or debt responsibly.
07:38That's why many Americans view credit as extra money, not borrowed money.
07:43This leads to overspending and long-term debt.
07:46The idea is buy now, pay later.
07:49Student loans and high housing costs normalize debt from an early age, and it becomes common for people to borrow money, not only for necessities, but also for luxury items.
08:03Curiously, the whole situation is very different for Europe.
08:07Credit is generally used only for planned expenses.
08:11For everyday spending, people mostly use cash or debit cards.
08:15College is free, or way cheaper than in the U.S. in most countries.
08:18So young adults usually start out without big student loans.
08:24Banks don't push credit cards on students, and the culture encourages saving, planning ahead, and avoiding risky money habits.
08:32Credit is just a tool, not a must.
08:34People can live comfortably without taking on high-interest loans or always borrowing money.
08:39Now, another curious thing we rarely think about is how the financial situation impacts young adults' love lives.
08:49People have always seen marriage as a big milestone, a sign of stability and commitment.
08:54But Gen Z, born around 1997 to 2012, has it tough when it comes to marriage.
09:01They're trapped.
09:02Student loans, sky-high rent, and the cost of living make tying the knot feel more like a burden than a celebration.
09:09Buying a house, raising a family, and keeping up a lifestyle all feel scary when money isn't steady.
09:15So unlike older generations, who often married young and built wealth together, Gen Z sees marriage as a big financial risk.
09:24That's it for today.
09:27So hey, if you pacified your curiosity, then give the video a like and share it with your friends.
09:32Or if you want more, just click on these videos and stay on the bright side.
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