Could You Still Afford Your Home If You Had To Buy It Today? Nearly 40% Of Homeowners Say They Couldn't

If you’re feeling lucky to have locked in your home purchase when you did, you’re not alone. A staggering 38% of U.S. homeowners say they wouldn’t be able to afford their current home if they had to buy it in today’s market, according to a recent Redfin survey of nearly 2,000 homeowners. 

The eye-opening findings underscore just how dramatically the housing market has changed in recent years. Home prices have skyrocketed, doubling over the past decade and shooting up nearly 50% in the last five years alone. Meanwhile, mortgage rates have surged to their highest levels in years, with the typical monthly payment on a median-priced home now a record $2,864.

“Rising home prices are a double-edged sword,” said Redfin Senior Economist Elijah de la Campa. “Americans who already own homes benefit from rising values…On the other hand, price appreciation makes the prospect of buying a new home daunting or even impossible for many people who want to move.”

The situation is particularly challenging for first-time buyers who haven’t built up equity from a previous home sale. Nearly 40% of U.S. renters don’t believe they’ll ever own a home, up from 27% last year, the Redfin survey found.

Despite Rising Costs, Investing in Real Estate Has Gotten a Lot Easier

But for those still determined to get a piece of the real estate pie, innovative new investing platforms are emerging to help level the playing field. One standout is Arrived Homes, a startup backed by Amazon founder Jeff Bezos that lets investors buy shares of rental properties for as little as $100.

Here’s how it works: Arrived purchases single-family rentals in up-and-coming neighborhoods, then offers shares of those properties to everyday investors through its online platform. Shareholders earn passive income from rent payments, while also benefiting from any appreciation in the home’s value. Arrived handles all the landlord duties like finding tenants and maintenance.

It’s a compelling model that’s already attracted over 580,000 users looking to access real estate’s historically impressive returns without the huge upfront costs and hassles of traditional home buying. And with Bezos himself invested in multiple funding rounds, Arrived has some serious tech clout behind it.

Of course, no investment is without risk. But for the many Americans feeling priced out of an increasingly competitive housing market, options like Arrived could offer a more accessible path to profiting from real estate. 

Want to learn more? Click here to explore investment opportunities and start building your property portfolio with as little as $100.