Realtor compares 2024 to 2021 home prices — says buying a home is now out of reach for most Americans
A finance expert and realtor is sharing the stark difference in wealth required to buy a house now versus in 2021, and the contrast is astounding.
As necessities grow increasingly expensive year by year, buying a property has become an unattainable dream for many. The real estate market appears increasingly out of reach for most, leaving people to rent small apartments or share living spaces. John Natale, a New Jersey-based realtor and financial coach known as @thejohnnatale on TikTok, recently shared a striking video comparing the experience of buying a house in 2021 versus 2024.
"The difference in wealth between buying your home in 2021 versus buying a home today is absolutely insane," Natale stated at the start of his video. "The difference between the millennials and even potentially Gen Z who were able to buy a house a few years ago and are trying to buy now, the difference is crazy." He also pointed out that in 2021, the median home price in America was $346,000, with a 10% down payment and a 3% interest rate. This would result in a median monthly mortgage payment of $1,313 for homes purchased in 2021.
"You add up all those payments over 30 years and that person is paying $472,680 for their entire mortgage," Natale explained. Fast forward to today, and the median home price in America has risen to $405,000, with a 10% down payment and a 7% interest rate. This results in a monthly mortgage payment of $2,425. Comparing the payments from 2021 to 2024, the difference adds up to a $400,000 gap over 30 years. "With all of those payments added up, that person is going to pay $873,000 for the exact same home as someone in 2021 will pay $470,000. If that wealth difference isn't enough, that $400,000 difference in interest vests just 10% per month. That's $100 a month and over the next 30 years, the person will have an additional $231,000 in wealth," Natale concluded.
Natale's video has garnered widespread attention, with nearly 2 million views on the platform. Commentators on his video voiced their frustrations over the skyrocketing prices of real estate. @jemery90 commented, "Bought our house in 2017. Refinanced our house to 2.25% in 15 years. We will have our house paid off in six years. We are in our 30s. Best decision." @theallisonchaney wrote, "Single millennial mom. Bought in 2021, 260K at 3%, mortgage under 2,000. I'm so grateful, but even more so sick that this isn't possible for others anymore." @breezemakesmesneeze quipped, "And in 30 years, both houses will be worth millions. Buying a house is still one of the best ways to build wealth." @gibblegabble1234 added, "My sister-in-law bought her house in early 2020. She can walk to the beach. Her mortgage is cheaper than my two-bed rent. I’m so jealous." @commanderpoopypants added, "Bought in 2020. $400k at 1.9% interest. Five-acre, newly built ranch home. Now my house is valued at $870k."
@thejohnnatale Replying to @2wheeledhobo those with a low interest rate just got out of ‘Nam, as they say. The difference in wealth is startling especially when you factor in the ability to invest the difference in what someone with a low rate would pay over the life of their loan versus someone buying with rates are what they are today. #realestate #housing #millennial #genz #housingmarket #realestatemarket ♬ original sound - John
You can follow John Natale (@thejohnnatale) on TikTok for more content on finance and real estate.
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