The American Dream Is Now 8 Figures Deep

Why no one’s selling, no one’s buying, and everyone’s losing

April 02, 2025

Remember when buying a home was considered a milestone of adulthood — not a pipe dream?

In 2024, the so-called “starter home” now starts at $500K+ in most major metros. Even in smaller cities, sky-high interest rates have doubled monthly payments compared to just a few years ago.

Renting? Not much better — with record-high demand, prices keep climbing.

But here’s the truth no one’s saying out loud:

This isn’t just a housing crisis. It’s a monetary policy crisis.

How We Got Here

For over a decade, the Fed kept interest rates artificially low. Then came trillions in stimulus and pandemic-era liquidity, all of which inflated asset prices — especially real estate.

When inflation finally became too loud to ignore, the Fed hit the brakes, aggressively hiking rates. But instead of cooling the market, it created a standoff:

  • 🏠 Homeowners are locked into 2–3% mortgage rates and won’t sell.

  • 💰 New buyers face 7%+ rates and record-high prices.

  • 📉 Inventory is near historic lows.

  • 📊 Wages haven’t even tried to keep up.

The Fallout

The housing market didn’t become unaffordable because homes got more valuable.

It became unaffordable because the dollar got weaker, and monetary policy broke the system.

What used to be a path to security and wealth-building now feels like a closed club with an eight-figure cover charge.

This is what currency devaluation actually looks like — not just overseas, but in your neighborhood.

What You Can Do About It

Feeling priced out of the market isn’t just frustrating — it’s strategic insight. Here’s how to navigate a housing market distorted by bad policy and a weakening dollar:

1. Focus on cash flow over appreciation.
If you’re investing, forget the “home runs.” In a market this inflated, cash-flowing properties (even small ones) matter more than paper gains.

2. Consider geographic arbitrage.
Leaving high-cost metros for smaller markets (or even international ones) isn’t just trendy — it’s survival for many. The value of your dollar stretches way further elsewhere.

3. Build your hedge.
If you’re priced out of real estate, look into alternative stores of value: Bitcoin, gold, even inflation-adjusted TIPS. Housing is just one asset — not the only one.

4. Keep your powder dry.
Don’t FOMO in. The system is shaky, and cracks are forming. There will be opportunities — especially for those sitting on dry powder when things shift.