$80K a Year for College?! What That Means for Home Prices

Last week, I had a conversation that stopped me in my tracks. While having breakfast with other realtors, one casually mentioned their child’s college tuition was $80,000.

Without thinking, I blurted out, “DAAAYYYYMMM… that’s a lot for four years!” The table laughed and corrected me: That was per year.

That moment hit me hard. When I went to college, it was a fraction of that cost. Today’s reality? Education costs have skyrocketed . And as wild as that sounds, it’s not so different from what’s happening in the housing market.

The Real Cost of the “Wait and See” Mindset

You’ve heard the stories, someone bought a home 15 years ago, sat on it, and sold it for double or triple the price. We call them “real estate geniuses,” but truthfully, they just held onto real estate long enough to let time do the heavy lifting.

The cost of not acting is what we need to focus on today.

Here’s the conservative math:

  • If home prices appreciate at just 4.6% per year (a conservative historical average), by the time my 16-month-old son is ready to buy a home, that $510,000 house today will cost around $1,059,300 in 18 years.

Let that sink in. Just like tuition, the price of entry into homeownership is compounding quickly. The data is clear: waiting often makes things worse, not better.

So What Can We Do About It Today?

Let’s be real: wages have not kept up with rising costs, especially in education and housing. If current trends continue, the next generation will face a much steeper climb toward homeownership.

But we are not powerless. Whether you’re a buyer, a current homeowner, or a parent, here’s what I’d suggest for building generational wealth:

For Buyers: Stop Waiting, Start Planning

Get educated, explore financing options, and find a way to make your move before affordability slips further out of reach. Your greatest ally in real estate is time in the market.

For Homeowners: Think Long-Term and Invest

Your primary home is one of your greatest assets. Think long-term: hold, invest in it, or consider how you might pass it down. Real estate is a long game, and every year you own it, you are leveraging appreciation for your family’s future.

For Parents: Build Them a Runway

Teach your children about money and assets. When the time comes, explore options to help with a down payment. Think about generational wealth and creating a financial foundation, not just monthly budgets.

The question isn’t if home prices will go up. The real question is: what are you doing about it today?