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Peter Schiff calls homeownership a wealth drain from upkeep costs
Yahoo Finance highlights that a 2022 survey found homeowners spent an average of $6,000 per year on repairs and maintenance, which could total far more over a typical 30-year mortgage.
Economist Peter Schiff argued in a conversation covered by Yahoo Finance that buying a home can act as a “money pit” by depleting savings, pointing to expenses that are not reflected in the purchase price.
He cited upkeep costs as a key reason homeownership may underperform expectations, noting that a 2022 survey by Hippo Insurance found homeowners spent an average of $6,000 per year on property repairs and maintenance. Over the life of a 30-year mortgage, he said those costs could add up to roughly $180,000, depending on where a buyer lives.
Schiff also warned that home price appreciation is not guaranteed, saying market dips occur even if people assume values always rise. Yahoo Finance notes the median sale price of new houses sold in October 2022 was $460,300, while the latest quarterly data put the median new-home price at $410,700, about 7.2% lower.
He further framed appreciation as largely tied to inflation, suggesting that land may keep pace while houses do not, and he argued that the true cost of ownership can overwhelm the benefits for many buyers.