Money Happens: What to do when becoming a homeowner feels out of reach

NEW YORK (AP) — Ever since graduating from high school, Tyler Jones hasn’t stopped working and doesn’t have any debt. Still, homeownership feels like an unattainable goal, only possible for past generations.

“Every time I get a paycheck, it’s all already spoken for,” said Jones, a 21-year-old who works at a deli and a nonprofit in Springfield, Massachusetts. Being a homeowner is one of Jones’ dreams, and his inability to save for it frustrates him.

Currently, 65% of working-age renters can’t cover their monthly expenses after paying for housing, according to an analysis from Harvard’s Joint Center for Housing Studies. Nearly half of all renters were cost-burdened by rent in 2024, which means they spent more than a third of their income on housing and utilities. That’s based on data from the most recent census.

                Money Happens: Housing Debt

In this episode, we hear how housing difficulties have affected the mental health of a young man. A financial therapist provides recommendations for anyone who also struggles with the instability of their housing situation.

EDITORS’ NOTE: The Money Happens series explores challenges and anxieties around money and offers helpful tips for dealing with them. Each episode features a case of an individual experiencing a challenging financial problem, whether it’s student loan or credit card debt, and an expert who can help provide strategies for working through these issues. You can listen to all of the episodes here.

Anxiety about the possibility of never being able to own a house can make some people give up on organizing their finances altogether, said John Hankins, a certified financial therapist.

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Sometimes “anxiety becomes kind of a self-perpetuating cycle,” he said.

If you hope to buy a house in the future but don’t know where to start, here are some expert tips for you:

1. Feel comfortable facing your finances

Getting a handle on your finances is the first step towards planning and achieving a financial goal. If you’re looking to buy a home in the future but that goal feels unattainable, start by figuring out how much money you’re bringing in, how much you’re spending, and where you can cut back to start saving.

For Jones, the anxiety of possibly being evicted from his current apartment because he lives paycheck to paycheck has been a barrier to making future plans for homeownership.

“I’d want to come back to this anxiety, this sadness that stopping him from getting his arms around his finances,” Hankins said.

Don’t let your anxieties stop you from facing your finances. The longer you avoid solving a financial worry, the longer it will take to solve it down the road.

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2. Avoid debt if you can, but build a credit history

After watching his parents get into large amounts of debt and have to deal with the consequences, Jones has avoided any type of debt, including student loans and credit cards. But he needs to build a credit history to buy a home in the future.

Learning to find a middle ground between building credit and falling into credit card debt is key, Hankins said.

“Once you have a credit card, it’s a dangerous thing,” he said. “So let’s be really understanding how you’re going to manage this so that it doesn’t get out of control.”

3. Don’t compare yourself to others

Jones often compares his journey to his parents’. They became homeowners in their mid-twenties while working in the restaurant industry. But that type of comparison isn’t helpful, Hankins said.

“It’s not a reflection on you that you haven’t been able to achieve what your parents achieved,” Hankins said. “They were operating under a whole different set of rules.”

The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.