Rethinking the American Dream

With rising market volatility, soaring home prices, and high interest rates, it's no surprise that increasing numbers of people in your position are exploring varied investment opportunities— and finding plenty of reasons to think beyond traditional home ownership.

The Cost of Home Ownership

Owning a home has long been touted as a wise investment. But today's reality is pushing many to reconsider. For those with significant capital, the stock market and other investment vehicles can offer better returns than holding onto a pricey piece of property. Especially in times of market uncertainty, diversifying your investments* can feel more secure than committing to a fixed asset, such as a home.

According to Redfin Estimates, the price of high-end homes (those estimated to be in the top 5% of their respective metro area based on market value) is increasing twice as fast (nearly 9% a year) as non-luxury homes, with high-end homes averaging in the $1.2 million range. While a 9% "return" may look attractive, you also must look at the expense of rising mortgage costs, if you're financing the purchase, and the costs of selling to realize the gain.

You may also be on the hook for local real estate taxes. Generally, the more expensive the property, the higher the tax. There's also the expense of insuring the property in addition to your personal belongings. And don't forget upkeep and maintenance costs. What's often touted as a "dream home" can quickly turn into a financial burden.

Weigh Experiences Versus Ownership

This may be especially important for younger investors. Having a home ties you down—both physically and financially. With global travel becoming easier and lifestyles evolving, you may find yourself prioritizing experiences over ownership. Short-term rentals, luxury condos, or even vacation homes in prime locations offer the freedom to switch up your surroundings without the long-term commitment of ownership.

Convenience can also play a role here. Property management, upkeep, and the stress of unforeseen repairs can be significant hassles. If you place a high value on your time, outsourcing these responsibilities becomes a no-brainer. Renting or leasing provides a level of convenience that home ownership can't compete with.

Lifestyle Perks

Let's not forget about lifestyle perks. Renting often opens doors to upscale amenities, including concierge services, world-class pools, and gyms. Instead of being tied to one address, you may choose to live in vibrant city centers, stunning coastal towns, or exclusive gated communities—whatever suits your current lifestyle. It's about enjoying life to the fullest.

For younger generations in particular, priorities are shifting. Many are investing in travel, wellness, and experiences rather than locking themselves into long-term housing commitments. With a growing focus on portfolio diversification, there's an undeniable allure in exploring opportunities that keep pace with evolving interests, rather than tying dollars up in real estate.

Is it time to reevaluate your approach to real estate with your trusted advisor and consider what living well may mean to you in today's world?