Will the Housing Market RESET? Here's Everything to Know

Let’s talk about the elephant in the room: the housing market. Everyone seems to have an opinion on where it’s headed and if you’re here, you’re probably wondering if there’s going to be a housing market reset. 

So, stay put and let’s explore what’s really happening, why things are shifting, and most importantly, what you can do to come out ahead.

Why People Are Talking About a Housing Market Reset

It’s no secret that buying a home is getting harder. If you’ve been eyeing the market, you’ve probably noticed that home prices feel like they’re on a rocket ship, and mortgage interest rates? Yeah, they’re higher than a kite. 

The days of locking in a 3% rate are behind us, with today’s rates sitting around 7%. That’s more than double what buyers were dealing with just a couple of years ago.

Let’s break it down. If you wanted to buy a $400,000 home in 2020 at a 3% interest rate, your monthly payment would’ve been about $1,686. Fast forward to now, with a 7% rate, and that payment jumps to $2,661. 

That’s almost $1,000 more a month! It’s no wonder people are turning to renting instead of buying.

Here are some jaw-dropping statistics that'll make you sit up and pay attention:

• 73.6% of single-family rentals in places like Irvine, California are now considered luxury properties

• Nearly 60% of young adults are "rent-burdened," spending more than 30% of their income on housing

• Home ownership rates have plummeted to 65.6% - the lowest in two years

• For those under 35, home ownership has crashed to a mere 37.4%

• The 35-44 age group is seeing similar declines in property ownership

Are We Becoming a Nation of Renters?

Here’s where it gets interesting. There’s a noticeable shift happening in the real estate market. Fewer people are buying homes, and more are choosing to rent. Renting has become the go-to option for a lot of folks, especially in cities where affordable housing feels like a myth.

 And it’s not just individuals making this choice. Big investment firms are cashing in on this trend, building entire neighborhoods of rental properties. 

• Blackstone is pouring billions into single-family rental properties

• Jeff Bezos has launched a single-family rental hedge fund

• Massive investment firms are converting properties into rentals at an unprecedented rate

Yep, the American Dream is getting a makeover.

Why? Well, for starters, renting offers flexibility. You’re not tied down to a mortgage, property taxes, or maintenance costs. Plus, let’s be honest: saving for a down payment in today’s market feels like climbing Everest without oxygen. For many, renting isn’t just a choice; it’s the only option.

Multiple factors are creating a perfect storm that's making home ownership increasingly difficult:

1. Student Loan Debt

   • Average debt per borrower: Over $30,000

   • This massive financial burden crushes young people's ability to save for a down payment

2. Wage Stagnation

   • Wages are not keeping pace with skyrocketing living costs

   • What used to be affordable is now out of reach for most

3. Mortgage Economics

   • In ALL 50 major US metros, renting is now cheaper than buying

     • Typical monthly mortgage for median-priced home: $273

     • National typical monthly rent: $1,979

     • In 21 US metros, owning is at least 50% more expensive than renting

But it's not just economics. Lifestyle preferences are fundamentally changing:

• Flexibility over permanence

• Gig economy and remote work

• Desire for geographical mobility

• Less attachment to traditional asset ownership

What About Building Wealth Through Homeownership?

If you’re thinking, “Wait, isn’t owning a home supposed to be the cornerstone of building wealth?” you’re not wrong. Traditionally, buying a home has been one of the best ways to accumulate wealth over time. But with prices so high and those pesky mortgage interest rates climbing, the barriers to entry are massive.

Here’s the reality: renting doesn’t have to mean giving up on creating wealth. If you shift your mindset, you can still achieve financial freedom through other forms of real estate investment. 

That’s where tools like the Cash Flow Savvy system come in. It’s designed for everyday people who want to fast-track their path to passive income without the headaches of traditional investing. Curious? Check it out and start laying the foundation for your financial future.

How to Make Money in This Market

So, if buying a home to live in feels out of reach, how can you still profit from the real estate market? The answer lies in creative real estate investing. Whether it’s purchasing an investment property, building a rental portfolio, or creating streams of passive income, there are plenty of ways to grow your wealth without owning the roof over your head.

Here are a few actionable real estate tips to get started:

1. Start Small: Look for properties in emerging neighborhoods where prices are still reasonable. These areas often have high rental demand.

2. Think Long-Term: Focus on properties with strong cash flow potential rather than quick flips. This strategy is more stable and predictable.

3. Leverage Financial Tools: The more you know about the market, the better equipped you’ll be to make smart decisions. Programs like No Cost Capital and Cash Flow Savvy can give you the resources you need to take the plunge into real estate investment without draining your savings.

Is the Housing Market Situation a Reset or a Revolution?

The housing market reset isn’t just about numbers and stats; it’s about a fundamental shift in how we think about housing and building wealth. Renting is no longer just a stepping stone to homeownership. 

For many, it’s a long-term lifestyle choice and, for savvy investors, a pathway to financial freedom.

If you’re ready to take control of your financial future, don’t wait. Start exploring your options today. The tools are out there. The question is: will you take the leap?