Peter Schiff says home ownership is a ‘money pit’ that depletes your savings. Is it ‘crazy
February 9, 2026
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Buying and owning a house is often considered a significant financial investment and a milestone in personal wealth building. However, economist Peter Schiff believes this notion is simply false.
During an appearance on Graham Stephan and Jack Selby’s The Iced Coffee Hour Podcast, Schiff was asked about the common belief that, for many, a house represents their primary means of saving (1).
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Schiff, who runs Euro Pacific Capital, strongly disagrees with this perspective.
“A house depletes your savings. It’s a money pit,” he said. “It’s crazy the amount of money that a house costs you.”
According to a 2022 survey by Hippo Insurance, homeowners spent an average of $6,000 per year on property repairs and maintenance (2). Over the life of a 30-year mortgage, that adds up to $180,000 — which could be nearly half of your home’s value, depending on where you live.
And proponents of homeownership often argue that property values appreciate over time, but market dips do happen. In fact, the median sale price of new houses sold in October 2022 was $460,300, but as of October 2025, that price is $392,300, according to Federal Reserve data (3).
“People think, ‘Oh, the house appreciates’ — not always,” Schiff cautioned. “It’s inflation that’s doing it. All that’s happening is your land is keeping pace — but houses don’t.”
This raises an important point. If inflation is the main driver, is owning physical property the only way to benefit from rising real estate values?
Not necessarily.
Here are a few other ways to invest in real estate without the burden of a mortgage, maintenance or timing the market.
If you bought a house years ago and sold it today, chances are you will receive more than the purchase price.
However, Schiff cautions that these sales often have significant caveats.
“Even if somebody tells you, ‘Oh, here’s this house that I sold for $1 million and I bought it, whatever, 10, 20 years ago for $500,000,’” he said. “If you think about all the money they put into that house over that period of time, they may not have made any money.”
And yet, real estate remains the most popular investment class.
A 2024 survey from Gallup found that 36% of Americans believe it’s the best bet for investing, while only 22% selected stocks and mutual funds (4).
In reality, the stock market is the better performer — in fact, stocks have outperformed the housing market by over 1,000% since 1990, according to CNBC (5). This highlights the importance of having the right mix of investments in your portfolio, rather than relying too heavily on your home as your retirement plan.
Read More: Approaching retirement with no savings? Don’t panic, you’re not alone. Here are 6 easy ways you can catch up (and fast)
The choice between buying and renting a home hinges on factors like your finances, lifestyle, local market trends and interest rates. While home ownership is a personal decision, Schiff believes one option often makes more sense.
“It depends on your circumstances and where the home is located,” Schiff said. “But for a lot of people — and this has been the case for a long time — renting is a better option.”
Beyond the purchase price, homeownership comes with hidden costs like maintenance, upgrades, insurance and property taxes.
Schiff also points to government policies that have skewed the housing market, like tax breaks for mortgage interest that aren’t available to renters. Add a sharp rise in interest rates, and the case for buying can become weaker for many.
But if you still want the benefits of investing in real estate without shelling out massive maintenance and repair costs each year, there are options available to you.
One easy way to diversify your investment portfolio is with Arrived.
Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning passive income without the headaches of being a landlord.
Browse their selection of vetted properties, each selected for its appreciation and income-generating potential. Once you choose a property, you can start investing with as little as $100.
You can also invest in longer-term rentals without buying property.
If diversifying into multifamily rentals appeals to you, you could consider investing with Lightstone DIRECT, a new investing platform from the Lightstone Group, one of the largest private real estate companies in the country with over 25,000 multifamily units in its portfolio.
Since they eliminate intermediaries — brokers and crowdfunding middlemen — accredited investors with a minimum investment of $100,000 can gain direct access to institutional-quality multifamily opportunities. This streamlined model can help reduce fees while enhancing transparency and control.
And with Lightstone DIRECT, you invest in single-asset multifamily deals alongside Lightstone — a true partner — as Lightstone puts at least 20% of its own capital into every offering. All of Lightstone’s investment opportunities undergo a rigorous, multi-stage review before being approved by Lightstone’s Principals, including Founder David Lichtenstein.
How it works is simple: Just sign up with your email, and you can schedule a call with a capital formation expert to assess your investment opportunities. From here, all you have to do is verify your details to begin investing.
Founded in 1986, Lightstone has a proven track record of delivering strong risk-adjusted returns across market cycles with a 27.6% historical net IRR and 2.54x historical net equity multiple on realized investments since 2004. All told, Lightstone has $12 billion in assets under management — including in industrial and commercial real estate.
As such, even if multifamily rentals don’t appeal to you, Lightstone could still serve you well as an investment vehicle for other real estate verticals.
Get started today with Lightstone DIRECT and invest alongside experienced professionals with skin in the game.
And even high-net-worth investors see the benefit of investing in the real estate market without purchasing physical property.
mogul is a real estate investment platform that offers fractional ownership in blue-chip rental properties, giving investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.
Founded by former Goldman Sachs real estate investors, the mogul team hand-picks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.
Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually.
Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds an additional layer of security, ensuring a permanent, verifiable record of each stake.
Sign up for an account and browse available properties to get started. Once you verify your information with the team, you’re ready to invest like a mogul.
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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The Iced Coffee Hour (1); Hippo (2); Federal Reserve (3); Gallup (4); CNBC (5)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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