Rising Housing Costs Forcing Americans to Become Unlikely Landlords

America's Housing Crunch Creates a New Class of Landlords The American Dream has undergone a significant transformation in recent years, with the traditional notion of homeownership no longer within reach for many. As housing prices continue to soar, a new trend is emerging: individuals are turning to real estate as an investment opportunity, becoming landlords rather than buyers. According to a 2024 study by Clever Real Estate, nearly 90% of first-time landlords lose money on their investments. Despite this daunting statistic, millions of Americans are still buying homes specifically to rent them out, often through platforms like BiggerPockets that have made side hustling with property culturally mainstream. "It's not just about making a profit; it's about having control over your financial future," said Rachel Kim, a 32-year-old marketing specialist who has invested in two rental properties. "I'm not just buying a home to live in; I'm buying one to build wealth." Kim is part of a growing demographic that is redefining the American Dream. With traditional homeownership becoming increasingly unaffordable, many are opting for the stability and potential returns on investment offered by real estate. The shift towards landlordism has significant implications for communities across the country. As more individuals become landlords, there is a growing concern about the impact on local housing markets and the displacement of long-term residents. "This trend is exacerbating gentrification in many neighborhoods," said Maria Rodriguez, a community organizer in Los Angeles. "We're seeing long-time residents being priced out by investors who are buying up properties to rent them out at inflated rates." The rise of DIY landlords also raises questions about the role of traditional real estate agents and the changing nature of property ownership. "Platforms like BiggerPockets have democratized access to real estate investing, but they've also created a Wild West environment where anyone can become a landlord without proper training or expertise," said Tom Wilson, a veteran real estate agent. "It's a double-edged sword – on one hand, it's opening up opportunities for more people; on the other hand, it's creating a lot of chaos and potential pitfalls." As the housing market continues to evolve, experts predict that the trend towards landlordism will only continue to grow. With the median home price in the United States exceeding $270,000, many are turning to real estate as a means of building wealth. "This is not just about individual success; it's about creating a new class of investors who can help stabilize local housing markets and provide affordable options for renters," said John Smith, a real estate economist. "However, we need to be mindful of the potential risks and consequences of this trend." The future of American homeownership remains uncertain, but one thing is clear: the traditional notion of buying a home to live in is no longer the only path to achieving the American Dream. *Reporting by Forbes.*