Suze Orman Says Homeownership May No Longer Be the American Dream — Here's Why
For generations, homeownership has been a key part of the American dream — but with insurance premiums spiking, property taxes climbing and maintenance costs quietly draining bank accounts, the dream can turn expensive fast.
Personal finance expert Suze Orman didn't sugarcoat her thoughts in a recent post to Facebook. She wrote, "Owning a home is not the American dream if you can't afford to keep it."
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Too many buyers fixate on the purchase price and down payment while ignoring the long-term cost of actually owning a home. When you really look at the cost of ownership year over year, buying isn't the right move for everyone.
Why Suze Orman Is Concerned About Homeownership
According to Orman, homeownership goes beyond just qualifying for a mortgage or scraping together a 20% down payment. Buyers have to consider the whole financial picture, including the uglier, expensive parts.
During a February episode of her "Women & Money" podcast, Orman pointed to rising insurance costs, property taxes, maintenance expenses and major household repairs as examples of the costs that can make homeownership expensive. Failing to account for those additional costs can leave buyers struggling to comfortably afford their homes.
Why Insurance Is Such a Big Concern
Insurance is the homeownership expense keeping Orman up at night. She wrote, "If you have a mortgage, you have to have insurance for your home." And while many people can afford the mortgage payment for a home, they might not be able to afford the insurance premium as well.
According to a 2025 report from the U.S. Treasury Department's Federal Insurance Office, homeowners' insurance premiums rose 8.7% faster than inflation between 2018 and 2022. Homeowners in the highest-risk ZIP codes paid average annual premiums of $2,321 — about 82% more than those in lower-risk areas.
That's not a rounding error. For buyers already stretching to afford a mortgage, that gap can be the difference between a manageable payment and a financial squeeze.
Some Homeowners Are Feeling It More Than Others
Location and climate can have a big impact on the cost of homeownership.
U.S. Census Bureau data shows that homeowners with mortgages in Florida, where they face weather related risks, paid a median annual property insurance cost of $2,273, the highest in the nation. California homeowners face a different version of the same problem: wildfire risk has made coverage harder to obtain in some parts of the state, and in some cases, harder to afford.
What Smart Buyers (and Renters) Should Take Away
Orman's advice isn't a warning to stop buying homes. Her point is that buying a home and being able to comfortably afford it are two different things.
So, do the math. Before making an offer, get insurance quotes for the specific property, estimate property taxes and build a realistic maintenance budget. What looks affordable at the closing table can look very different six months in.
If you're a renter, you shouldn't assume that you're making a financial mistake by waiting. If buying a home would stretch your budget too thin, continuing to rent while building savings is a legitimate strategy, not a fallback.
At the end of her post, Orman wrote, "The American dream, my American dream for all of you, is that you live a secure life." For many households, financial security is a better measure of success than homeownership alone.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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