Such factors also have an influence on the perception of one’s career, and often place medical or engineering professions at the top of a social hierarchy. People perceive different jobs as stable and respectable, irrespective of their own level of satisfaction or appropriateness, according to a report published by the Pew Research Center (2021). Such perceptions become even more evident when an individual is transitioning through a career change. Creative jobs or freelancing are normally considered unusual career paths and could be severely scrutinized. Individuals who work in non-traditional professions feel the need to justify their career choices, especially if they are from a culture that focuses on a strong connection between social status and profession, according to research published in Work, Employment and Society (2018). Responses like these are often implicit, but they have an effect on how individuals respond to questions regarding their profession.

Social validation can also have a major effect on career decisions. People can continue in careers based on external expectations even if they do not align with personal goals. There is a tension between autonomy and approval, where decisions must be made based on personal desire and external approval. Career decisions have multiple meanings, which include statements of ambition and identity within a cultural framework. It is this multiple meaning of career decisions that helps explain why they appear more complicated than they would be if based simply on economic or individual needs.

1. Doing it alone

Financial education is important, and a good financial adviser should be able to help you plan your finances.

“They will discuss your needs and goals and help you put together a financial plan. They can also recommend financial solutions to help you to achieve your goals. It is important to ask them about planning for life’s ‘what ifs’. Make sure you have short-term insurance to cover any accidents or mishaps with your car, home or valuables,” says Old Mutual’s Karabo Ramookho.

2. Not budgeting

Without a budget, you run the risk of overspending.

“Plan your finances and stick to that in order to avoid nasty surprises,” says analyst Wendy Makhado of Mazi Asset Management. Many banking apps have budgeting or money-tracking tools to help you rein in your spending.

“For example, there is 22seven,a free budgeting app by Old Mutual. This lets you see where your money is going, so you can cut waste, and put more money towards the things that really matter to you,” says Ramookho.

3. How to plan for a financial crisis not planning ahead

Good money management starts with a good plan.

“The pandemic has left many of us realising that we are ill-prepared financially. Make sure you plan and have a clear long-term vision,” says Old Mutual’s John Manyike.

Save for emergencies, build up a nest egg, and invest for your future.

4. Not addressing debt

If you already have debt and are struggling with payments, make sure you don’t ignore them.

“The biggest mistake you can make is to be in denial about your dire financial situation. Address the matter before it becomes a problem. If it is already a problem, don’t ignore it, hoping it will disappear – it won’t. Avoiding your creditor’s calls won’t help. If you get a letter of demand, do something about it immediately. But know your rights – the law says no debt collector is allowed to threaten, intimidate or use force against you (the debtor). If they do, you can report them. The National Credit Act protects your rights and all creditors have to adhere to it,” says Ramookho.

You can also negotiate with your creditors.

“Explain that you are unable to pay the account in full, but if they are willing and you are able to, you will pay a reduced amount. It is important that you don’t overcommit yourself with your repayment plan,” advises Ramookho.

5. Disinvestment or withdrawal of funds

Withdrawal of pension funds or disinvesting your money may seem a quick way to get cash, but it’s never a good idea, as it takes away money from your future.

“Don’t be tempted to disinvest because of panic. Markets are generally volatile during uncertain times, but will self-correct over time. And, if you happen to resign or are retrenched from your job during this time, avoid the temptation to cash out your retirement savings. Preserve it – don’t borrow from your future,” says Ramookho.

6. Not having another income

The certain way to make your money grow is to bring in more money. If you have a full-time job, aside hustle could be one way you could do it.

“Increasing income may not be as easy for many, but if there is a craft that you can do and it can generate income, have a go at it,” says Makhado.

Think about what you’re passionate about– it could be fashion or farming. Your passion project could bring you joy and supplement your income at the same time.

7. Not adjusting your expenses

The two most important things to do first, when looking to rebuild your finances, are to reduce expenditure and to increase the money coming in.

“Do this by cutting out non-essential spending such as eating out and money-based entertainment, re-negotiate your insurance, downgrade some of your higher expenses and, most importantly, pay your future self by investing for the long-term, and saving,” says Makhado.

I got my start with real estate investing in 2016 with the purchase of a run-down 1970s split level with four bedrooms. My W-2 income was less than $23,000 at the time. I lived with a rotating cast of three other short and long-term renters for years while slowly renovating it. Deals like that are much harder to find today, but that doesn’t mean you’re shut out of the market entirely if you’re in the same income bracket I was.

Here are five proven ways to invest in real estate, ranging from hands-off approaches that take minutes and minimal funds to set up, to more involved strategies that could become your full-time occupation.

1. Real Estate Investment Trusts (REITs)

What they are: REITs (Real Estate Investment Trusts) are companies that own, operate or finance income-producing real estate across various sectors like shopping malls, apartment buildings, offices, warehouses and hotels. They work similarly to mutual funds, allowing you to invest in real estate without actually buying or managing physical properties.

If you’re looking to invest in real estate immediately with limited funds at risk, REITs offer the most accessible entry point.

REITs are required by law to distribute at least 90% of their taxable income to shareholders as dividends, which typically makes them excellent income-generating investments. Many REITs pay higher dividend yields than what you’ll find with many stocks. Keep in mind that dividends from a REIT will be taxed at your income tax rate, not the lower capital gains tax rate you’d get with other investments, so you’ll need to prepare for a larger tax bill or hold them in a tax-advantaged account.

The beauty of REITs lies in their simplicity. You don’t have to worry about finding tenants, fixing toilets or dealing with property taxes as the REIT management team handles all those headaches. You just invest your money and collect dividends when they do well.

How to get started: You can buy shares of publicly traded REITs through any brokerage account, just like you would purchase stocks. If you’re new to investing or don’t have much capital, many investing apps like Robinhood, M1 Finance and Stash offer fractional shares of REIT ETFs (Exchange-Traded Funds), allowing you to start with as little as $5.

Expert tip: Consider diversifying across different types of REITs. Residential, commercial, healthcare and mortgage REITs each respond differently to economic changes, providing better portfolio protection. Since REITs pay through dividends, holding your REITs in a tax-advantaged account like a Roth IRA or Health Savings Account is a smart money move.

2. Crowdfunding Real Estate Platforms

What they are: Crowdfunding real estate platforms are online services that connect investors with real estate developers seeking funding for specific projects. Rather than investing in diversified portfolios of several properties like REITs, these platforms let you select individual properties or development projects to invest in.

For investors who want more control over their real estate investments without the hassle of direct property ownership, crowdfunding platforms offer an intriguing middle ground.

These platforms typically fund commercial or residential developments, apartment renovations or other real estate projects. The returns can potentially be higher than REITs, but so is the risk since you’re often investing in a single property rather than a diversified portfolio.

Consider that most crowdfunding investments lock up your money for several years. While some platforms offer early withdrawal options, they typically come with penalties or depend on another investor buying your shares.

How to get started: Popular platforms include Fundrise (which allows investments starting around $10) and CrowdStreet (which focuses on commercial real estate but typically requires larger minimum investments, often over $25,000). Be aware that some platforms only accept accredited investors—individuals with a net worth over $1 million (excluding primary residence) or annual income exceeding $200,000.

Expert tip: While crowdfunding is increasing in popularity, I don’t recommend it for beginners. The fees are substantially higher and less transparent, plus they aren’t diversified enough for people new to the industry. A REIT is a much better starting point until you better understand real estate investments.

3. Invest in Your Own Home

What is it: Perhaps the most common real estate investment most people make is purchasing a primary residence. By making mortgage payments, you gradually build equity in your home while potentially benefiting from property appreciation.

If you continue to slowly climb the property ladder during your working years and then downsize in retirement, you’re likely to benefit from a stable place to stay and a large check at the end of it.

However, the financial returns might be less impressive than you’d expect. Even with the wild market recently, home prices have only averaged a 4.29% increase in value annually since 1987, according to data from the Federal Reserve.

By comparison, REITs have historically delivered average annual returns around 11.28%, according to Nareit, while even a basic S&P 500 index fund has averaged roughly 10% returns long-term.

That doesn’t mean buying a home is a bad investment, it just means you should think of it as both a lifestyle choice and a financial one. Government programs for homebuyers, along with favorable mortgage terms, make homes much more accessible than other real estate investments.

You can even follow my playbook and rent rooms out while living in your home for extra cash flow for renovations, to build equity faster or to reduce your housing expenses.

How to get started: If you’re considering buying a home, first assess whether you plan to stay in one location for at least three to five years (to offset transaction costs). Research first-time homebuyer programs in your area, which might offer down payment assistance or reduced interest rates. Make sure your monthly mortgage payment is well within your budget, as you’ll be on the hook for maintenance as well as regularly increasing property taxes and insurance premiums.

Expert tip: Don’t rush to pay off a low-interest mortgage if you can earn higher returns by investing that extra money elsewhere. While a paid-off mortgage is an emotional win, it’s rarely the smartest money move. Let’s say you have room in your budget and can either pay off your 3% mortgage earlier or invest more in your 401(k) and you’re in a 30% total tax bracket. Paying off your mortgage saves you 3% in interest, but investing in your 401(k) will give you an immediate 30% tax savings, and grow at an average rate of roughly 10% a year if investing in something like an S&P 500 index fund.

4. Invest in Rental Properties

What is it: Purchasing residential or commercial property to rent out to tenants is perhaps the most traditional form of real estate investing. This approach can provide both ongoing income and potential appreciation.

Rental properties come in two main varieties:

• Long-term rentals: These properties are typically leased for at least a year, providing consistent monthly income (assuming reliable tenants). Options range from single-family homes to multi-unit properties.
• Short-term rentals: These cater to travelers and temporary residents through platforms like Airbnb and VRBO. While they typically generate higher nightly rates, they also require more active management and face more volatile seasonal and economic fluctuations.

The appeal of rental properties lies in their wealth-building potential. A well-chosen rental property can provide monthly cash flow while it potentially appreciates, and your tenants essentially help pay down your mortgage.

The downside? Becoming a landlord involves significant work. Finding tenants, handling maintenance, addressing emergencies and dealing with potential vacancies. Additionally, financing investment properties typically requires larger down payments and comes with higher interest rates than primary residences.

I’ve been a landlord for most of the last nine years, generally living with or near my tenants. The vast majority of my tenants have been fantastic people, but the few bad ones were so bad that I stopped renting out my house entirely. Carefully consider if you have the stomach to deal with a nightmare scenario before you start investing in rental properties.

How to get started: Research rental rates and property values in your target market. Many successful investors start with a small, manageable property like a duplex or condo. Consider “house hacking” by living in one unit of a multi-unit property while renting out the others, which can qualify you for better financing terms.

Expert tip: Factor in at least one to two months of vacancy per year when calculating potential returns, along with setting aside 1% to 2% of the property value annually for maintenance and repairs. Many new landlords underestimate these costs and overestimate their cash flow.

5. Flip Properties for Profit

What is it: Property flipping involves purchasing homes or buildings, renovating them and selling them at a higher price. This strategy can deliver significant returns but requires substantial knowledge, capital, risk tolerance and ability (if you DIY your renovations).

Despite what you might see on HGTV, flipping houses isn’t a guaranteed path to quick profits. It requires identifying undervalued properties, accurately estimating renovation costs, managing contractors (or doing the work yourself) and understanding local market trends.

The financial risks are considerable. Renovation costs frequently exceed initial estimates, permits can cause unexpected delays and market conditions might shift while your money is tied up in the project. Most flippers need to account for financing costs, realtor commissions, closing costs and capital gains taxes, all of which eat into profits.

For those with construction experience or strong contractor relationships, flipping can be highly profitable. The key is buying properties at a sufficient discount to cover all expenses while leaving room for profit.

How to get started: Before diving in, spend time learning your local market: attend open houses, track property values and build relationships with realtors specializing in distressed properties. Consider partnering with an experienced flipper on your first project to learn the ropes.

Expert tip: Use the 70% rule as a starting point: Never pay more than 70% of a property’s After Repair Value (ARV) minus renovation costs. For example, if a renovated home would sell for $300,000 and needs $50,000 in repairs, you shouldn’t pay more than $160,000 ($300,000 × 0.7 – $50,000).

Which Real Estate Investment Strategy Is Right for You?

The best approach depends on your financial goals, risk tolerance, available capital and desired level of involvement:

• For passive income with minimal effort: REITs or real estate crowdfunding
• For building equity while meeting a basic need: Your primary residence
• For ongoing income plus appreciation: Rental properties
• For active income requiring significant effort: Property flipping

Real estate investing can provide portfolio diversification, potential tax advantages and protection against inflation. But physical properties also come with illiquidity risks. You can’t sell a house as quickly as you can sell a stock.

For most investors, a balanced approach works best. Start with REITs to gain exposure to real estate while learning more about the market. As your knowledge and capital grow, you might consider adding a rental property or exploring more active strategies.

Whatever approach you choose, remember that real estate—like any investment—requires research, patience and a clear-eyed assessment of both potential returns and risks. Talk with a financial advisor about how real estate fits into your overall investment strategy before making any major decisions.

The path to real estate wealth is rarely a sprint; it’s a marathon. But for those willing to put in the effort and make informed choices, it remains one of the most reliable routes to long-term financial security.

The US Federal Reserve kept interest rates unchanged on Wednesday, holding its benchmark policy rate in the 3.50 to 3.75 per cent range as it grapples with renewed inflation pressures driven by surging oil prices and geopolitical tensions.

The move was widely expected, but discussions around the decision reflected growing concern inside the Fed that inflation risks may not be fading as quickly as hoped.

“Developments in West Asia are contributing to a high level of uncertainty about the economic outlook,” the Fed said in a statement, adding that inflation is “elevated” in part due to the surge in energy prices.

The Fed added that while the unemployment rate has changed little in recent months, job gains remain low.

Fed policymakers are increasingly focused on the impact of surging oil prices driven by the Iran war. The continued closure of the strategic Strait of Hormuz has pushed Brent crude back above 110 dollars per barrel, compared with around 70 dollars before the escalation in February.

This has complicated the Fed’s inflation outlook, which is already under pressure.

Inflation in the US remains about one percentage point above the Fed’s 2 per cent target. The central bank also expects upcoming inflation data to show further upward pressure, adding to the challenge of bringing price growth under control.

Against this backdrop, the US economy continues to show resilience.

Job growth has remained surprisingly firm, and unemployment has eased to around 4.3 per cent. That resilience reduces pressure on the Fed to cut rates in the near term.

However, economists say the combination of sticky inflation and strong employment is pushing the central bank toward a more cautious stance.

Markets are now pricing in a prolonged period of higher interest rates, with traders seeing little chance of cuts before mid-next year.

The decision also comes at a politically sensitive moment for the US central bank, with Jerome Powell nearing the end of his term as Fed chair on May 15.

Retirement planning is no walk in the park. It’s complicated. No surprise that many of us make mistakes that can turn retirement dreams into last-minute panic.

As retirement nears, there are tons of things to think about, like when to take Social Security, how much to take out of your 401(k), creating a spending plan you can stick to and investing your retirement savings. And like the butterfly effect, tiny decisions now can lead to huge, life-altering consequences down the road.

That’s why it’s crazy to go it alone.

A Northwestern Mutual study found that 71% of U.S. adults admit their financial planning needs improvement. However, only 29% of Americans work with a financial adviser.

The value of working with a financial adviser varies by person, but according to an independent study, people who work with a financial adviser feel more at ease about their finances and could end up with about 15% more money to spend in retirement.

But who can you trust for guidance? In the past, you’d have to turn to a stranger and take your chances. But that was then.

These days there are no-cost online services, such as SmartAsset, that make discovering your ideal financial adviser a snap. You fill out a short questionnaire, then get matched with up to three local fiduciary financial advisers, each legally bound to work in your best interests. The process only takes a few minutes, and in many cases you can be connected instantly with an expert for a free retirement consultation.

Definitely something you should do, especially if your savings are $100,000 or more. Meanwhile, here are some of the biggest retirement mistakes — and how to avoid them.

1. Failing to plan is planning to fail

A happy retirement is one that’s stress-free. And how do you eliminate stress? Simple: by having a plan.

When you want to go somewhere you’ve never been, do you get in your car, drive around aimlessly and hope to eventually arrive? No. First, you decide where you want to go. Then you use a map to plot the shortest path to get there.

A financial plan is a map plotting the shortest path to reach your retirement goals. Deciding what you’re going to do, where you’re going to do it, how much it’s going to cost and where the money will come from: all parts of your plan. But what if your plans change as you approach retirement? That’s OK. It’s your plan; you’re welcome to change it.

Does making a plan sound complicated? It is. The investments you choose, income taxes, and your target retirement dates are just a few of the tons of variables you’ll have to consider. That’s why if there’s one time in your life you could use professional advice, this is it. Hiring an experienced, expert guide in the form of a qualified financial planner will keep you from getting lost and get you to your destination.

2. Putting off till tomorrow what you should have started yesterday

According to a recent survey by Bankrate.com, the biggest financial regret is not saving enough for retirement. And why don’t Americans save enough? Because they put it off, saying some variation of, “I’ll wait till I have more money”, or “I’ll start when I get closer to retirement.”

The thing is, the longer you wait, the harder it will be. In other words, starting small but sooner is better than starting large but later.

If you’re behind on retirement savings, a financial adviser may be able to help you catch up and figure out how much you’ll need to invest to meet your goals. In addition to investing for your future, a financial adviser can offer guidance on budgeting and paying off debt.

And while there’s obviously no guarantee, if an adviser can increase your returns, it could make a big difference. Consider this: if you save $500 a month for 40 years and earn an average annual return of 5%, you’ll end up with nearly $725,000. Double that return to 10%, and you’ll retire with almost $2.7 million. That’s a life-changing difference.

Again, there’s no guarantee a pro is going to do better than you could on your own. But the point is that, over time, tiny things can make a huge difference in your life.

3. Retiring too soon or not soon enough

If you are thinking about retiring soon, you may dream of quitting your job and traveling the world. However, before you call it quits, there are a number of reasons you may want to think things over. First, you may live longer than you expect, you may run into unforeseen health issues or face tough financial times that force you to cut back.

That’s not to say you shouldn’t retire early, but if that’s your plan, run various scenarios to make sure your savings are going to cover your expenses during retirement and offer a lifetime of income.

Same with not retiring soon enough. If you’re unsure your savings will be adequate, you’ll worry and as a result, perhaps work longer than you have to. You’re much better off knowing what you have and what you’ll need. Replace doubt with certainty and only work as long as you want to.

4. Hiring the wrong financial adviser

Whether it’s building wealth or securing a comfortable retirement, hiring a financial adviser is a major life decision. Unfortunately, not all are created equal. Hire the wrong adviser and you could end up worse off than when you started.

When it’s time to find someone to assist you, always meet with several planners. Talk to them, ask a similar list of questions and assess their qualifications and advice before making a decision. Ask how they get paid and how long they’ve been in the business. Take your time. And always deal with a fiduciary: a planner who’s legally bound to put your interests above their own.

These days, finding a financial adviser you know was well-vetted doesn’t have to be frustrating or difficult. Start your search with this free financial adviser matching tool, which matches you with up to three qualified financial advisers in under five minutes. Every adviser is vetted and is a fiduciary.

5. Taking too much risk, or not enough

Risk is a funny thing. Take too much and you can lose your savings. But take too little and you can lose purchasing power to inflation.

The money you retire with is money that can’t be replaced. That’s why we lean toward low-risk, low-return investments as we age. But as inflation erodes the value of money, that seemingly safe nest-egg drops in value in terms of what it can buy. Bottom line? Often, taking no risk presents risks of its own.

Investing, both before and after retirement, is about balance: harnessing investments designed to keep your income flowing, inflation hedged and risks manageable. Your strategy will require safe, guaranteed-income investments, as well as some exposure to stocks and other inflation-protection investments.

One piece of lasting wisdom from Buffett came during Berkshire Hathaway’s 2004 annual shareholders’ meeting, when a 14-year-old boy from California posed a question.

“What advice would you give a young person like me on how to be successful?” asked Justin Fong, a young shareholder at the time.

Buffett offered a simple, yet thought-provoking answer: “It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours, and you’ll drift in that direction.”

This follows other common leadership advice: Surround yourself with people you admire. But Buffett took that advice one step further, saying young professionals should spend time with people who are “better” than them, although he didn’t expand on what exactly that meant.

Still, Buffett’s former business partner, the late Berkshire Hathaway vice chairman Charlie Munger, echoed the sentiment.

“If this gives you a little temporary unpopularity with your peer group, the hell with ’em,” Munger said.

Buffett said in his final shareholder letter this fall that he’d be “going quiet” after his retirement, but his endless career advice will continue to live on.

What other executives and researchers say about Buffett’s advice

Several other executives and successful businesspeople have given similar advice to younger generations: Spend time with people you wish to emulate.

Billionaire Virgin Atlantic cofounder Richard Branson wrote in a 2023 LinkedIn post that people should surround themselves with those who are “smarter than you.”

“Give them everything they need to grow, and your business will thrive,” he continued.

Apple cofounder Steve Jobs also gave similar advice in a 1992 lecture, saying it just makes plain sense to hire smart people.

“It doesn’t make sense to hire smart people and then tell them what to do; we hire smart people so they can tell us what to do,” he said.

Academic research also shows it can be beneficial for working professionals to surround themselves with high-achievers. A 2017 study from Northwestern University’s Kellogg School of Management found that sitting within 25 feet of a high-performer improved coworkers’ speed or quality by up to 15%, generating an estimated $1 million in annual profits per firm.

“The beautiful part of it is that when we put these people together, they’re not going to materially suffer on the area of strength,” said Dylan Minor, one of the researchers on the study and a former Kellogg faculty member. “They’re only going to improve on their area of weakness.”

Researchers surveyed more than 2,000 tech workers for the study, and call this phenomenon “positive spillover,” but warned it can work in the opposite way, too.

“Once a toxic person shows up next to you, your risk of becoming toxic yourself has gone up,” Minor warned. With toxic workers, “we see their imprint and negative effect across an entire floor.”

By cultivating the appropriate ability and financial discipline, one can be able to gain resiliency and be able to sail through turbulence with confidence.

The following are five practical solutions to upscaling yourself without compromising your financial performance.

1. Treat Learning as a Long-Term Investment

In a rapidly evolving professional landscape, upgrading your skills is essential to remain competitive. Pursuing certifications, short courses, or digital learning programs can help individuals expand their capabilities and unlock better career opportunities. Rather than viewing education as an expense, it should be considered a long-term investment that strengthens both professional growth and future earning potential.

2. Strengthen Your Understanding of Personal Finance

Professional success alone does not guarantee financial stability. Developing a clear understanding of personal finance such as managing expenses, building savings, investing wisely, and planning for retirement helps individuals make better financial choices. Strong financial awareness ensures that career progress translates into sustainable wealth and long-term financial wellbeing.

3. Make Career Planning and Career Goals meet

Upskilling cannot occur independently. The professional ambitions should be aligned with personal financial ambitions (home ownership, retirement planning or financing the education of their children). Career development and financial planning are two aspects that work hand in hand to ensure that people attain sustainable growth.

4. Develop Future-Ready Skills

Technology, data, and digital transformation are the future of work. There is a growing industry demand in such skills as digital literacy, analytical thinking, adaptability and problem-solving. The development of such competencies will assist professionals to be relevant and competitive in a changing job market.

5. Professional Financial Advice

With the increase in complexity of financial lives, professional advice from CERTIFIED FINANCIAL PLANNER® may be significant in aiding people to remain financially on track. Professional financial planners can offer comprehensive advice that incorporates saving, investment, risk management and long-term financial objectives.

Upskilling and financial planning are not in different directions and are complementary to one another, to a secure and full future. Through knowledge investment, acquisition of relevant skills and informed financial decisions, individuals can enhance their professional path and financial health.

In a world which is growing more dynamic, being able to develop professionally and remain financially stable will be one of the aspects that determine long-term success and stability.

Professional development and financial welfare are two inseparable issues in the modern rapidly evolving world. With emerging opportunities and the changing nature of industries, people should constantly advance their skills on the one hand, and at the same time, their financial choices should not compromise their life objectives. By cultivating the appropriate ability and financial discipline, one can be able to gain resiliency and be able to sail through turbulence with confidence.

1. Treat Learning as a Long-Term Investment

2. Strengthen Your Understanding of Personal Finance

3. Make Career Planning and Career Goals meet

4. Develop Future-Ready Skills

5. Professional Financial Advice

But homeownership has its own troubles, like a hefty price tag — and for LaZette, the responsibility of maintaining a place on her own at age 87.

Instead, LaZette found a way to avoid both apartments and ownership. She rented a brand-new house that was specifically built not for sale, but for tenants like her.

“I share no walls with anybody, and it’s like having my own private little house that I just rent,” LaZette said.

About 7% of new single-family houses hitting the market are now for rent, not sale. More than 10 times as many “build-to-rent” homes were completed in the U.S. in 2024 as compared with a decade earlier.

Many of these are being constructed by firms that specialize in build-to-rent housing, like NexMetro, which develops and owns single-family rental homes in the Sun Belt, a hot market for these properties. That’s where populations are growing and there’s plenty of land. Ohio and Utah have also seen a boom.

When NexMetro CEO Josh Hartmann started building these houses in 2009, in the aftermath of the financial crisis, he expected to get homeowners who had faced foreclosure and could no longer afford owning but still wanted the same home lifestyle.

Instead, Hartmann said most of his residents have been young professionals, who were more likely to be pet owners than parents. Many wanted to live in a single-family home but either were not ready or were uninterested in homeownership.

“It’s just a lifestyle choice,” said Hartmann. “They’re kind of figuring out where they want to live. They don’t want to buy a house yet.”

Others are older residents unwilling to buy and maintain a house late in life.

Supporters like Hartmann say these new constructions help make both renting and buying more affordable. They drive down housing costs for both by boosting housing supply.

“Homeownership has gotten so far out of the reach of most people,” said LaZette, who rents a NexMetro home. “This trend, I think, is a godsend .”

A bigger supply of available homes

The U.S. is in a housing affordability crisis. An American family needs to make $110,000 a year to own a typical home, according to the real estate broker Redfin. That’s about 29% higher than what the median household makes.

The biggest problem with the American housing market is a lack of supply, said Laurie Goodman, founder of the Housing Finance Policy Center at the Urban Institute. New U.S. households are forming faster than new units — from apartments to houses — are being built, according to realtor.com, which estimated the overall housing shortfall at just over 4 million in 2025.

While speaking at the World Economic Forum in January, President Trump said that the U.S. will not become a “nation of renters” and called for Congress to ban large investors from buying up single-family homes and turning them into rentals. But his own executive order restricting those purchases has language to ensure that investors can keep developing new build-to-rent homes.

Last week, the average rate for a 30-year, fixed-rate mortgage dipped below 6% for the first time since 2022, which could make buying more affordable for some home-seekers. But if more buyers enter the housing market without an uptick in supply, prices could shoot up and erase any affordability gains, according to a recent report from realtor.com.

That is why Goodman believes build-to-rent is a boon, since these houses would have otherwise not been built. More supply — be it for rent or buying — lowers housing prices for both groups.

“Build-to-rent is a win-win all around,” Goodman said.

Build-to-rent can turn “not in my backyard” into a “yes”

Homeownership has long been a central part of American culture; it’s a way to put down roots in a community. and one of the main ways people build wealth.

But that may be changing as more people embrace long-term renting. A recent survey of 1,000 Americans renting single-family homes conducted by the Center for Generational Kinetics, a research center studying the different mindsets between generations, found that only 8% of those renters defined the American dream as owning a home.

Still, the real estate world is short on supply for renters too. In 2024, the U.S. had about 800,000 fewer single-family houses for rent compared with a decade earlier, according to the National Association of Realtors. Some of that is due to investors selling off their rental houses to homebuyers.

“ Do we need more homes for sale? Absolutely,” said Jay Parsons, a rental housing economist and independent consultant. “ But that shouldn’t come at the expense of renters. We need more rental homes too.”

One of the biggest barriers to building more rental units can be local opposition to apartment construction.

“Everyone wants attainable housing, just not near their house,” said Hartmann.

Hartmann said residents often push back on a company’s plans, fearing the company will build tall apartment buildings that they worry will ruin the charm of their neighborhood. But the homes NexMetro builds are stand-alone, each a single story and half the size of a traditional home. Hartmann calls them “cottages.” He said a lot of worries go away when neighbors come to local meetings and see the plans.

“They see our little homes, our cottages, and they’re like, ‘Oh, yeah. I like that,'” Hartmann said.

Homebuying builds equity, but for tenants, choosing not to buy isn’t necessarily a bad financial move.

In fact, renting is cheaper than owning in the country’s 100 largest metros, according to LendingTree. Renters who invest what they save on housing can also build wealth.

Plus, some like Mona Gass just prefer the ease of renting. She has the money to own, but why? She has rented for half her life and enjoys being able to just call maintenance.

“Am I throwing my money away? Maybe,” said Gass. “But I don’t have to fix anything.”

She’s currently renting a three-bedroom NexMetro home — brand-new when she got the key in 2019 — with her mother in Mesa, Arizona. In a way, renting has become part of her identity.

“I’m gonna rent,” Gass said. “That’s what I do.”

The University of Michigan’s final April sentiment index dropped to 49.8 this month from 53.3 in March. While that was slightly improved from the preliminary reading, it remained the lowest in data going back to 1978.

Consumers expect prices to rise at an annual rate of 4.7% over the next year, up from 3.8% in March, the data released on Friday showed. That was the biggest one-month increase since President Donald Trump announced sweeping tariffs last year.

They saw costs rising at an annual rate of 3.5% over the next five to 10 years, the highest since October.

Sentiment has tumbled in the wake of the Iran war, which has driven up fuel costs for inflation-weary Americans. So far, though, retail sales data out earlier this week indicated consumers continue to spend on a broad range of merchandise.

While the US and Iran have agreed to a temporary ceasefire, the absence of a permanent deal to end the war is keeping uncertainty elevated for consumers and weighing on the outlook.

“The Iran conflict appears to influence consumer views primarily through shocks to gasoline and potentially other prices,” Joanne Hsu, director of the survey, said in a statement. “In contrast, military and diplomatic developments that do not lift supply constraints or lower energy prices are unlikely to buoy consumers.”

Analysts have warned that gas prices, currently around $4 a gallon, could remain elevated for months even if a deal is reached. That could continue to weigh on sentiment.

Americans are enjoying bigger tax refunds, which alongside signs of front-loading of purchases, helps explain at least some of the improvement in retail activity. Still, spending risks softening in the coming months as higher energy costs add to pressure on household budgets.

Consumers expect gas prices to climb nearly 50 cents in the coming year, though expectations differed by political affiliation. Overall, nearly two-thirds of respondents expect fuel costs to be higher a year from now, the largest share since 2022.

The current conditions gauge declined in April to a four-month low, while the expectations index dropped to the lowest in nearly a year.

Consumers’ perceptions of their expected financial situation was the weakest since May of last year.

The survey period includes responses from March 24 to April 20.

According to the most recent figures from the U.S. Federal Reserve’s Survey of Consumer Finances, only about 2.5% of all Americans actually have $1 million or more saved in their retirement accounts.

Among actual retirees, only 3.2% have reached the $1 million threshold.

The Million-Dollar Reality Check

According to Fed data, just over half of Americans (54.3%) have retirement accounts, period, and of those, less than one in 20 (4.7%) have reached the $1 million mark. That figure rises to 18% of U.S. households if you include all assets, such as real estate and other savings.

What Most Retirees Actually Have

The median retirement savings for households led by someone between the ages of 65 and 74 years old is $200,000. For those 75 and older, it’s just $130,000.

Why So Few Reach $1 Million

Several factors explain why million-dollar retirement accounts are rare. Income plays the most obvious role, with high-income households typically saving an average of $769,000 compared with just $79,500 for middle-income households.

Education makes a dramatic difference, too. A typical college graduate has three times the median retirement savings as someone who graduated from high school, but not college ($141,700 vs. $44,000, respectively).

Homeownership also significantly impacts retirement savings, with homeowners averaging $303,000 in retirement accounts, more than 2.5 times as much as renters.

Nearly 500K Americans Are 401(k) Millionaires

Despite the overall percentages, there’s been remarkable growth at the top end. Fidelity Investments reports that the number of “401(k) millionaires” reached a record of about 497,000 Americans as of 2024, with nearly 399,000 also having at least $1 million in individual retirement accounts (IRAs)—two groups that often overlap.

The key to reaching these amounts is starting early and contributing consistently over many years—to get to a million dollars, it takes an average of about 27 years, according to Fidelity.

“I’ve seen clients start with six figures of debt and very little assets and eventually reach $500,000 (and more) of net financial wealth,” David Tenerelli, a certified financial planner at Values Added Financial Planning, told Investopedia. That’s easier to reach if you’re a high-income professional, he noted. “But high income is not the only way to financial prosperity; living frugally, investing wisely, and optimizing for taxes are all important ingredients for anyone to accumulate financial wealth.”

The Bottom Line

Having a million dollars in your account on the day of your retirement remains an elusive goal for the vast majority of Americans, with fewer than one in 30 achieving it. In fact, about three-fifths of Americans are afraid they’ll outlive their savings.

For those who are still working, the message is clear: start saving early, contribute consistently, and consider reaching $1 million as being part of a very exclusive club.