How would you feel if someone told you the idea of homeownership as the ultimate goal of the American Dream wasn’t just an outdated idea, but a marketing ploy designed to keep you in debt? In a recent YouTube video, Codie Sanchez, New York Times bestselling author and CEO of Contrarian Thinking, urged her viewers to rethink what financial security really means.
Sanchez said buying a home keeps you “asset rich but cash poor.” She believes that when you buy a house, “your wealth is actually locked behind walls” and owning a home by itself is “just dressed up debt.”
Rethinking Goals
Sanchez pointed out a stark contrast between how middle-class and wealthy people manage their assets. “If your net worth is under a million dollars, odds are your biggest asset is your house and your car.”
For individuals in the higher tax bracket, their most significant asset is likely a private business that generates a reliable and predictable monthly income. That’s the key difference, and one Sanchez said should inspire you to rethink your ultimate goal.
Homeownership isn’t only a misdirection of capital that would be better invested elsewhere, Sanchez sees homeownership as a liability, one where you’re essentially exchanging investment capital for debt. In her view, a private home isn’t only a bad goal, but a dangerous one. While many people see the milestone as a crowning achievement, Sanchez sees it as an opportunity cost that isn’t worth the price. “You don’t need a house. You need a profit machine that buys your house.”
Find Out: I’m a Real Estate Agent: 7 Places To Avoid Buying a House in 2026
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Checking the Math
Sanchez said even the stock market is a better investment than homeownership. The same $100,000 invested in the stock market would have realized an average return of around three to 4 1/2 times the gain in equity for a house costing the same amount. But stocks, Sanchez said, aren’t even the best option.
Many financial advisors recommend real estate investments, especially rental income. Sanchez checked their math and found some problems. Giving the example of a rental property costing the national average of $400,000, you’re looking at a lot less return than you might at first assume. “After the mortgage, maintenance, taxes, and tenant calls about leaky faucets, you’re bringing in 200 bucks a month in net income. That is 2,400 bucks a year.” That’s a return of about 6%, and Sanchez thinks there’s a better way.
The Better Investment
“Here’s the uncomfortable truth. Wealth doesn’t come from grinding harder. It comes from owning things that grow while you sleep.” Sanchez said the same $400,000 invested in a small business is the better move. “Instead of buying a house, if I had $50k, $100k, even up to $400k, I wouldn’t buy a house. I’d buy a boring business with existing customers, predictable revenue.”
The type of business matters less than consistent earnings. Sanchez suggested “boring” businesses like property management, lawn care or even dog grooming. As long as it’s an established business with a customer base that allows it to earn a reasonable profit, it’s a better place to put your money.
Investing in a small business may not be as exciting as buying a house, but according to Sanchez, a $400,000 investment would net about $60,000 a year based on a conservative 15% profit margin. “I’d use that cash flow to pay for rent or housing. So, I’d use my asset to pay for my liability. Then, I’d buy more income streams in order to buy a house.”
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This article originally appeared on GOBankingRates.com: Why Buying a Home in 2026 Is a Dangerous Goal, According to One Money Expert
