'You Probably Don't Want To Go Buy A House,' Says Best-Selling Author JL Collins—Even As Homeownership Remains The 'American Dream'

Homeownership has long been promoted as the ultimate financial milestone and the cornerstone of the “American Dream.”

“If your goal is to become financially independent at a young age, you probably don’t want to go buy a house,” best-selling author JL Collins said recently on “The Diary of a CEO” podcast, as housing prices, interest rates, and everyday costs continue to rise.

Collins, author of “The Simple Path To Wealth,” said buying a home often ties up capital that could otherwise be invested. “You’re putting your capital into that house and now it’s not going to be earning anything,” he told host Steven Bartlett.

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He added that buyers are often encouraged to stretch to the maximum amount a bank will approve. “People typically buy the most house they can possibly afford,” Collins said. “The industry drives them that way.”

Renting was cheaper than owning across the major U.S. metro areas it reviewed, a recently published study from LendingTree (NASDAQ:TREE) found. It estimated homeowners with mortgages pay 36.9% more per month than renters, with median 2024 monthly homeowner costs at $2,035 versus $1,487 in median gross rent — about a $550 monthly gap.

Collins said additional costs often follow after purchasing a home, including maintenance and other ownership expenses. “Your mortgage is just the starting point,” he told Bartlett.

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Another overlooked benefit of renting, Collins said, is mobility. Renting keeps costs predictable and makes it easier to relocate for work or opportunity without the friction of selling a property or becoming an accidental landlord.

That flexibility matters in a job market where careers can change quickly. Collins told Bartlett that owning a home can create pressure to stay put even when better options appear elsewhere.

“Getting in and out of an apartment doesn’t cost anything,” he said. “If you buy a house and then decide you want to go do something else, now you’ve got to sell it—or rent it. Now you’re a landlord, and that’s not optimal.”

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