How Do You Buy a Home When it Doesn't Feel Affordable?
- Liana Pomeroy
- 19 hours ago
- 5 min read
I’ve been running affordability analyses for years now, especially since the pandemic shifted everything so dramatically.
When rates were artificially low, buying power jumped, buyers were out in droves, and home prices rose due to the increase in demand. Once those government-driven conditions faded, rates swung hard in the other direction, getting close to 8% at the worst of it.
Now things have settled into a more normal range, around the 6% mark depending on the loan and specific borrower profile, but the combination of today’s rates and still-elevated home prices has left a lot of people still feeling like homeownership is out of reach. Even with softer markets in some areas of the country, home prices haven’t dropped enough to balance out the cost of homeownership – especially with insurance costs on the rise too.
Almost exactly a year ago I took a deeper look at what was happening with my own clients. I had plenty of applications early in the year, but very few of those buyers actually moved forward. Most chose to keep renting, and some made the bigger decision to move out of state in search of somewhere more affordable. That’s not market theory. That’s what people I was working with were actually doing. Given my application to close ratio had been close to 90% for most of my decades-long career, I was truly concerned. Was affordability causing all these people not to buy?
While rates are lower than a year ago, they’re still much higher than during the pandemic. However, there’s been a notable shift: since the beginning of 2026 nearly every buyer who has applied for a mortgage with me has gone on to buy a home. In some cases, they’re even running into competition for the home they want, depending on the area. It’s a little early to know for sure, but this year seems to be tilting towards a seller’s market which will just add to the issue.
All things considered, housing affordability is a real concern for those struggling to figure it out. There’s no way to sugarcoat it. At the same time, real estate continues to be one of the most reliable ways to build long-term wealth, especially for people who didn’t start with it.
So while buying might feel challenging for a lot of folks, it’s worth asking a different question: What happens if you don’t buy?
If you’re one of the people looking at housing prices and thinking you’ll just rent forever, please keep reading. Renting can feel easier month to month, but it doesn’t create anything for the future. You might be “making rent” but you’re certainly not building an asset. And as rents continue to rise, what feels more affordable now will most likely end up costing you more than a current mortgage payment down the road. So then real question becomes, how do you make this work in today’s market?
Start by Looking at the Whole Picture
One of the biggest shifts I walk clients through is this idea that the full payment is not always your true cost.
It’s very common for buyers to see a $4,000 to $4,500 monthly payment and immediately shut down. And honestly, that reaction makes sense if you’re planning to carry that payment entirely on your own.
But that’s not the only way to approach it.
When you start looking at a home not just as a place to live, but as something that can also offset its own cost, the conversation changes pretty quickly.
House Hacking, Without the Lifestyle Trade-Off
A lot of people hear “house hacking” and immediately think of shared kitchens and living spaces and absolutely no privacy. For most people I know, that’s a non-starter.
The version that actually works for a lot of my clients is much simpler and a lot more livable.
It usually involves creating a separate space within the home. That could be a basement with its own entrance, which is more common than people think, especially in homes built in the 60s and 70s. Sometimes it’s already set up that way. Other times it just takes a few adjustments, like adding a door or using a walkout lower level. I’ve also seen clients convert garages or smaller sections of the home into fully functional living spaces.
From there, you have options. Most people live in the main part of the house and rent out the smaller space. Some do the reverse and keep their own living costs extremely low. Others use the additional living space for short-term rentals.
The point is, you’re no longer carrying the full payment alone.
What started as a $4,500 monthly obligation might function more like $2,500 or $3,000 depending on how it’s set up. In some cases, I’ve seen clients get their out-of-pocket cost close to, or even below, what they were paying in rent.
That’s when the numbers start to feel very different.
Duplexes Simplify the Strategy
If you want something more straightforward, a duplex can be a great option.
You live in one unit and rent the other. There’s no need to create or modify space because it’s already designed that way.
There are also financing benefits that come into play. With certain loan programs, you can use a portion of the rental income from the second unit to help you qualify. That can make a meaningful difference, especially if you’re tight on qualifying.
It’s one of the cleaner ways to both reduce your monthly burden and expand what you’re able to purchase.
You Can Also Share the Entry Point
Another option that’s becoming more common is buying with someone else.
That doesn’t have to mean a spouse. It could be a friend, a sibling, or someone you trust who has similar goals.
When structured correctly, it allows you to split the upfront costs, share the responsibility, and still benefit from the long-term upside. It’s not the right fit for everyone, but for some buyers, it’s the step that makes ownership possible now instead of years down the road.
Affordability Is About How You Structure the Deal
What all of these approaches have in common is that they work within today’s market. They don’t rely on prices dropping or rates going back to pandemic levels. They’re about using what’s available and structuring it in a way that makes sense for you.
Because if you’re waiting for the perfect market, you may be waiting longer than you expect. And in the meantime, the cost of entry can continue to move.
The Bottom Line
This is a harder market than it was a few years ago. That part is real.
But people are still buying. Not because it’s easy, but because they’re approaching it differently. They’re asking better questions and looking at more than just the surface-level numbers.
Instead of asking, “Can I afford this on my own?” they’re asking, “How can I make this work?”
And if you’re trying to figure out what that looks like for you, I’m always happy to walk through your specific situation, run the numbers, and help you think through different ways to approach it. There isn’t a one-size-fits-all answer, but there is usually a path to homeownership once you start looking at it in a more creative way. Let's have a conversation.
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Liana Pomeroy
Senior Mortgage Loan Advisor
Equal Housing Lender | Licensed in CO, FL, CA, TN & TX
All loans subject to approval. Conditions apply.