HOW MUCH DOES A HOUSE COST?
Now that the election is over we can finally tell the truth about the cost of housing.
I researched Realtor.com for livable houses (needed carpet and paint) which were NOT in a flood zone. Once outside of major cities, I found there were hundreds of houses like this in my state for UNDER $125,000. Nice, middle-class homes. Many with brick exteriors. Some with level properties; others with walk-out basements. Many within 20 minutes of Walmart and a regional hospital. Expanding the search to include houses up to $200,000 I found thousands.
Where is the housing problem? Ah! If you have to live close to a major city there were far fewer options.
Now about affording a house … It always has been too much. That’s not new. Also not new … how hard it is to save up for the down payment. That has always been hard. But down payment is NOT the only expense for closing on a house. You’ll need to pay loan fees, inspection fees, and maybe some of the costs if your lender requires safety updates, like a hand rail. Reality is that a great deal of self-control and dedication is required. That also is not new!
I remind you of these things because many this year have been openly critical of the “cost.” If there are new hardships they may be due to the last 20 years of government interference. What kinds of interference? Well, the cost of cars has risen faster than inflation due to government REQUIREMENTS (like impossible MPG and back up cameras). The cost of transportation has pushed families out of the housing market. Then there was the change in health insurance a while back which tripled the cost of medical care. Then they have been pushing for changes in heating and cooling systems, electric cooking, more expensive light bulbs. If it were only ONE change, housing would not have raised as much or as quickly. But when government pushes EVERY personal expense is higher, it is also harder to set aside money for home ownership.
Then, under two recent presidents (not the current one, as hard as it is to believe) the cost of goods and services increased more than 50% rather than the normal 38%. Wow! Did you know that we had unusually high inflation over 12 of the last 18 years?
These things AREN’T housing, but they all have affected housing costs.
Do you know what else has affected the cost of buying a house? Super numbers of people coming to America! In our city we have a large Ukrainian population. In Minnesota there are large populations of peoples from Asia, Africa, and the Mid-East. Those are examples. Your area has had increases in population as well. AND they want housing….which increases the price of rentals and homes. If our population had grown merely from citizens having children our nation’s growth would be much lower (2/3 of our growth is from outsiders).
What else? It is hard to save for a down payment while giving away chocolates at Easter and Halloween. Do you know how much my wife and I have saved by NOT participating? We also have never fallen for the firecracker joke. We don’t buy bottle rockets and fireworks and saved $15,000 per decade! We also have never treated our kids to a restaurant birthday party or hired a clown.
If you do stupid short-term things you’ll get stupid long-term results.
What else have we decided were less important than owning our own home? We don’t pay for restaurant food delivery services, frozen meals, cable TV, and music streaming apps. I brew my coffee at home. Our entertaining budget is FIXED and firm … we never pay more than $30 per meal anywhere. We also love FREE things, like state parks, like walking trails, and community concerts.
“But we can’t do that!” you say. That is exactly why housing is too expensive for YOU. It has to be a priority. If your priority is meal delivery, then you’ll never own a home.
Make up your mind! Where do you want to be in 5 years? In your own home or still renting?
I’m talking about a money diet. Either you bloat your budget with the little things that stop the big things, or you go on a money diet and stop eating your money calories on everything but what you want. Empty financial calories or reaching lofty goals? Its your choice and your recent complaints tell me you probably won’t do what it takes.
A house costs this: Giving up things that are stopping you. Math doesn’t have emotions. It is pure fact-based. If you save a dollar at interest after a year you have … $1.06. There’s no, “But I want it to be $3,” because your wishes and emotions count for NOTHING.
If you want a house in the $300,000 range, you will have to save up $60,000 plus closing costs and fees (for a total of about $75,000). Nothing else will do. The only part of that which is inside your control is how much you give up to get the house you think you “deserve.” [By the way, you’ll also need an emergency fund to replace that water heater when it dies 30 days later.] “If wishes were horses even beggars would ride.”
Why am I being so mean?
Telling the truth is not being mean. I’m explaining the path to achieve what you say you want. In ~1,200 words I don’t have time to coddle or coerce. So, I’m laying truth on the line and giving you the power to achieve exactly what you want. Facing the truth is always better than ignoring it.
Finally, ignorance is not your friend. Americans carry computers in their pockets, yet few use them to do research! A survey in 2024 by MoneyWise.com reported: “Over 56% of respondents to a recent Moneywise survey flunked a quiz of common homebuying terms, including ‘mortgage rate’ and ‘down payment.’ “ They continued, “The survey of 1,116 people spanned generations, and while younger respondents, including first-time homebuyers, struggled more, most quiz takers well into their 40s and 50s still received an F.” Maybe you should be diligent and find out HOW to buy a home, what inspections you should have, and how much it will cost to do them.
I read an article by Slate.com about a family who wants OUT of the house they bought. I noticed that the couple had not done due diligence. They overspent their budget, had no inspections, and set aside nothing in their emergency fund. Well, when you fail to plan ahead, you will have consequences. And they did. The roof leaked, appliances quickly failed, and the trees were unstable. In short, they were foolish.
Buying a house is the biggest financial event in your life. Take a few hours and read up on how to do it. I’m sure there’s “A Dumbed Down Guide to Buying a Home” – type book available.
Copyright 2026 Donald Whelpley
[PLEASE NOTE that Don is always open to discussing the thoughts and opinions he shares here and welcomes comments as shared in the comment section. He doesn’t use other social media platforms and won’t see whatever you’d like to share with him if you post it elsewhere.
ALSO, Don is always open to offer his thoughts on various topics. If you have a specific request, you can let him know in a comment; he reads – and replies to – them all. ~ Sherry]
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