Real Estate

By the time millennials hit retirement age, the median home price in the U.S. will conservatively hit 1 million dollars. Your two-year-old that will be looking at their first home in 25 years will be shopping for 1-million-dollar homes. $200,000 will be needed for a downpayment and $5,700/month on a 20-year mortgage payment. (not including taxes, insurance or utilities). As most parents have realized, 25 years go by in a blink of an eye. This projection was made by the National Association of realtors, not your 58-year-old uncle still living with his mom.

In 1990 the median home price was $90,000. As of this writing (June 2026) the median home price is $434,000. This is where things get interesting. While normal inflation and appreciation contribute to the 1-million-dollar price tag, what is not talked about, is the "affordability squeeze".

Home prices have grown 5x since 1990. Incomes have roughly increased…

Hitting submit on your final mortgage payment feels orgasmic. You are finally free and own your home free and clear after 20-30 years of back breaking payments. But do you really ever own your home?

8 years ago, we moved into our newly constructed home with a very manageable mortgage payment, and cheap(er) utilities. Our property and school taxes combined were approximately $3,500 per year in 2018 and our electric bill was $135 per month. Fast forward 8 years and after diligent spending habits, and working hard, the mortgage was paid off. Our particular property has 2 rental units on it which helped tremendously in crushing the mortgage. While having no mortgage is exciting and liberating, taxes and utilities follow you to the grave.

Spiraling out of control: Taxes

Our taxes in 2018 were $3,500 annually

Our taxes in 2025 are $6,400 annually (83% increase)

Can you guess what the number one asset for families in the United States is? Answer = Home ownership. Home equity accounts for 43% of net worth for the average household. Homeowners are 40x wealthier than renters, with an average net worth of $400,000 compared to just $10,000 for renters. I do believe however that owning a home is a great idea for most people. Having structured monthly payments, pride of ownership, and in many cases solid property appreciation over the long-term. With that said there are major items often overlooked when shopping for a new home.

#1 Property and School Taxes

Taxes vary quite a bit state to state but are a major line item when calculating what you can afford. When banks preapprove you, they do not take into account taxes. Many homeowners shit when they get their first school tax bill September 1st and gulp at having…